Same problem, no fix that I know of.
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hard disk being accessed every 4 sec.
https://launchpad.net/bugs/17878
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Ubuntu 6.06.
Thanks
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encrypted loopback file BUGs kernel
https://launchpad.net/bugs/86793
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Public bug reported:
I made an encrypted filesystem (on a file) using truecrypt.
I didn't know if this was going to work or not, so I tried it out...
losetup -e aes myfile /dev/loop/0
Password: --
(Some message about an invalid argument)
(ok, so I'll try again)
losetup -e aes myfile /dev/loop/0
P