Still inside chroot, modify /etc/fstab so that it contains:

/dev/loop0      /               ext3    defaults       0       1

Delete /etc/mtab and exit from chroot. Finally, run "umount -d /mnt/efs" and reboot. If something goes wrong, you can still boot your unencrypted partition by entering "Linux root=/dev/hda3" at the LILO: prompt.

If everything went well, you can now re-partition your disk and encrypt hda3 as well as hda4. In the following scripts, we assume that hda3 will hold the swap device and hda4 will contain /home; you should initialize both partitions first:

shred -n 1 -v /dev/hda3
shred -n 1 -v /dev/hda4
losetup -e aes256 -S xxxxxx /dev/loop1 /dev/hda3
losetup -e aes256 -S xxxxxx /dev/loop2 /dev/hda4
mkswap /dev/loop1
mke2fs -j /dev/loop2

Then create a script in the system startup directory and update fstab:

cat > /etc/init.d/loop << "EOF"
#!/bin/sh

if [ "`/usr/bin/md5sum /dev/hda1`" != \
     "5671cebdb3bed87c3b3c345f0101d016  /dev/hda1" ]
then
    echo -n "WARNING! hda1 integrity verification FAILED - press enter."
    read
fi

echo "1st password chosen above" | \
    /sbin/losetup -p 0 -e aes256 -S xxxxxx /dev/loop1 /dev/hda3

echo "2nd password chosen above" | \
    /sbin/losetup -p 0 -e aes256 -S xxxxxx /dev/loop2 /dev/hda4

/sbin/swapon /dev/loop1

for i in `seq 0 63`
do
    echo -n -e "\33[10;10]\33[11;10]" > /dev/tty$i
done

EOF

chmod 700 /etc/init.d/loop
ln -s ../init.d/loop /etc/rcS.d/S00loop
vi /etc/fstab
...
/dev/loop2      /home           ext3    defaults       0       2