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I replaced the loop.ko module in initrd.gz compiled from the standalone loop-aes sources with that compiled from the combined sources and rebuilt the iso.
I also put the 4 modules in 'block' but I don't think that makes any difference.
Ciphers insert now, no kernel tainting, no errors of any kind in dmesg!
So these 2 loop.ko modules must somehow be different.
Thanks very much for all your support Jari!
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