I wanted to post to the group that I have created a utility class for performing encryption and decryption using the PyCrypto library. It really can't be baked in to web2py due to 1, export restrictions, but also the underlying PyCrypto library is not pure python. There is some optimized C in the library.
If anybody is interested, I can clean up the code, remove some of my more "trade secret" stuff and share it. If you are hosting on GAE, you may use PyCrpyto, but there are caveats. PGP and IDEA crpyt modules are not there due to licensing. Furthermore PKI operations are re-written by Google in pure python instead of optimized, faster C. This is due to their security policy. My utility class uses AES and the CFB mode. cheers --