anyone seen the source code around, I cant seem to find it anywhere...

It's in the util-linux package, at http://www.kernel.org/pub/linux/utils/util-linux
Look in the mount directory, from their you should be able to do a "make losetup". I might have the binary floating around for the zaurus, I'll check when I get home tonight.

well conpiled it but the configure seems to complain about libcrypt.h, anyone have this by any chance?

I don't know if it will work for you or not, but try the one from this site

I found it using Google