Using Knoppix3.4 and boot option knoppix26, I cannot use old disk encryption:

losetup -e AES128 /dev/loop0 /dev/sda1
Password:
ioctl: LOOP_SET_STATUS: Das Argument ist ungültig

AFAIK, encryption has changed with kernel 2.6. Is there any new/different encryption available with Knoppix 3.4/kernel 2.6