There are many steps involved in the process. I will provide Details for these steps in the next section. I thought it would be nice to provide a summary first to provide reference (if you are experienced with unix/linux you probably don't need the details anyway). Here they are summarized as follows:
http://ftp.kerneli.org/pub/kerneli/
ftp://ftp.kernel.org/pub/linux/utils/util-linux/
/dev/loop0 /mnt/crypt ext2 user,noauto,rw,loop 0 0
dd if=/dev/urandom of=/etc/cryptfile bs=1M count=10
losetup -e serpent /dev/loop0 /etc/cryptfile
You only have one chance to enter the password, be careful. If you want to double-check your password, you can use the command:
losetup -d /dev/loop0
This will deactivate your loop device. Next you will run losetup again to test your password, as follows:
losetup -e serpent /dev/loop0 /etc/cryptfile
mkfs -t ext2 /dev/loop0
mount -t ext2 /dev/loop0 /mnt/crypt
umount /dev/loop0
losetup -d /dev/loop0