have done it but not on a zaurus, its not that hard once you have losetup (which i belive the zaurus dose not have)
anyway you create a file or partition and fill it up with random data (ie dd if=/dev/random/ of=`your file or partition here` bs=1024K count =128) that should fill the directory up with 128 MB of random data (you can skip this setp as it can take a long time and you have to move the mouse and type to help generate random data) i belive doing this for 200GB was calculated at takig 3 days if some one was using the computer 24/7
next you call losetup and bind the file to a loop devices (ie /dev/loopx) with losetup -e aes `path to file or partition` /dev/loop0 (type losetup without any arguments for some simple help as i am doing this from memorey) just a word of warning -e allows you to specify a name, while -E allows yo to specify a number that represents a kernel module for encryption
it will then ask you for a password, chose somthing nice and long
next fromat the /dev/loopx device with mkfs.ext2 -j /dev/loopx
then mount /dev/loopx somewhere and you are done, keep in mind you have to type the password every time you mount but when you remount it is posible to get the mount command to auto allocate a loop device and handel the losetup stuff for you (see the mount man pages near the end)
if you need any more help just post here but the guides work farily well a good one is at
www.tldp.org