Instead of making up some hashing key-generation method, please look
at RFC2104 "HMAC" (and the six or seven followup rfc's on specific
instantiations.)

Also, for rsync, I don't see why you'd particularly want a stream
cipher (it isn't interactive, you have "large" packets to work with)
and I might suggest you look at Rijndael, the newly-standardized US
AES... 

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