http://kerneltrap.org/node/2433
http://lwn.net/Articles/67216/
Problems:
->Original Cryptoloop is vulnerable to Dictionnary attacks. If you think bigbrother is watching you, consider dm-crypt.
->dm-crypt is more stable
->Cryptloop will maybe be removed from the kernel >2.7
Solutions:
->Switch to dm-crypt
->Or if using cryptoloop DO NOT USE A KNOWN WORD as your key (there are not so many words that are more than 20 letters unless you are german, chinese,..

->Use a modified cryptoloop.
I think its time to switch to dm-crypt, it's very easy to use with the help of cryptsetup. Also exists LUKS on top of this but i'm not using it