Hi, I faced the same problem when I've tried to create an encrypted image.
I dig a bit and found /usr/share/doc/loop-aes-utils/README. Then I changed an example hook with modules stuff from /usr/share/live-helper/examples/hooks/ and created this hook: ------------------------ starts here ------------------------------- #!/bin/sh echo "HOOK: loop aes" echo "I: loop aes modules." # check /usr/share/doc/loop-aes-source/README.Debian for KERNEL in /boot/vmlinuz-* do VERSION="$(basename ${KERNEL} | sed -e 's|vmlinuz-||')" echo "I: installing linux-headers for " ${VERSION} apt-get install --yes linux-headers-${VERSION} done apt-get install --yes build-essential module-assistant apt-get install --yes loop-aes-source # Building kernel module module-assistant -t update for KERNEL in /boot/vmlinuz-* do VERSION="$(basename ${KERNEL} | sed -e 's|vmlinuz-||')" module-assistant --non-inter --quiet auto-install loop-aes -l ${VERSION} module-assistant -t clean loop-aes done # enable file system checks on boot /usr/share/doc/loop-aes-utils/README echo "I: enable loop file system checks on boot" sed -i 's/CHECKFS_LOOP_ENABLE=no/CHECKFS_LOOP_ENABLE=yes/' /etc/default/checkfs-loop # forcily enable INITRAMFS_LOOPAES echo "I: enable INITRAMFS_LOOPAES on initramfs.conf" echo "# Load loop-aes" >> /etc/initramfs-tools/initramfs.conf echo "INITRAMFS_LOOPAES=yes" >> /etc/initramfs-tools/initramfs.conf # add loop to /etc/modules echo "I: add loop module" echo "# loop module for aes" >> /etc/modules echo "loop" >> /etc/modules echo "" >> /etc/modules echo "# dm-crypt module, just for sure." >> /etc/modules echo "dm-crypt" >> /etc/modules echo "" >> /etc/modules ------------------------ ends here ------------------------------- I'm not sure if the last part (adding to /etc/modules) is needed, but its there to be sure it works, and it's been working here so far.