CryptoAPI password and network usage

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Some questions:

1) Where is the password stored that you type in upon
running losetup? Is it stored somewhere on the local
machine, or is it embedded in the "cryptofile" that
holds all the encrypted materials?

2) The reason I ask is that I would like to use an
encrypted filesystem across the network. If i set
everything up on MACHINE1, how would I connect to it
across the network? Create a traditional samba mount
so that my local MACHINE2 can access the encrypted
file/system "cryptofile" and then setup another
loopback on the local MACHINE2?

3) I guess what I'm wondering is what will happen with
the passwords. What happens if I take the giant file
that I use to store all the encrypted materials,
"cryptofile" and move it to another MACHINE3 and try
to use it?

Thanks


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Linux-crypto:  cryptography in and on the Linux system
Archive:       http://mail.nl.linux.org/linux-crypto/


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