diff -NurpP --minimal linux-2.6.16-vs2.1.1-rc14.1/drivers/block/loop.c linux-2.6.16-vs2.1.1-rc14.2/drivers/block/loop.c
--- linux-2.6.16-vs2.1.1-rc14.1/drivers/block/loop.c	2006-03-20 17:32:31 +0100
+++ linux-2.6.16-vs2.1.1-rc14.2/drivers/block/loop.c	2006-03-24 03:37:07 +0100
@@ -943,7 +943,7 @@ loop_set_status(struct loop_device *lo, 
 	struct loop_func_table *xfer;
 
 	if (lo->lo_encrypt_key_size && lo->lo_key_owner != current->uid &&
-	    !capable(CAP_SYS_ADMIN))
+	    !capable(CAP_SYS_ADMIN) && !vx_ccaps(VXC_CRYPTO_LOOP))
 		return -EPERM;
 	if (lo->lo_state != Lo_bound)
 		return -ENXIO;
@@ -1023,7 +1023,8 @@ loop_get_status(struct loop_device *lo, 
 	memcpy(info->lo_crypt_name, lo->lo_crypt_name, LO_NAME_SIZE);
 	info->lo_encrypt_type =
 		lo->lo_encryption ? lo->lo_encryption->number : 0;
-	if (lo->lo_encrypt_key_size && capable(CAP_SYS_ADMIN)) {
+	if (lo->lo_encrypt_key_size &&
+		(capable(CAP_SYS_ADMIN) || vx_ccaps(VXC_CRYPTO_LOOP))) {
 		info->lo_encrypt_key_size = lo->lo_encrypt_key_size;
 		memcpy(info->lo_encrypt_key, lo->lo_encrypt_key,
 		       lo->lo_encrypt_key_size);
diff -NurpP --minimal linux-2.6.16-vs2.1.1-rc14.1/include/linux/vserver/context.h linux-2.6.16-vs2.1.1-rc14.2/include/linux/vserver/context.h
--- linux-2.6.16-vs2.1.1-rc14.1/include/linux/vserver/context.h	2006-03-20 18:09:05 +0100
+++ linux-2.6.16-vs2.1.1-rc14.2/include/linux/vserver/context.h	2006-03-24 03:35:26 +0100
@@ -76,6 +76,7 @@
 #define VXC_BINARY_MOUNT	0x00040000
 
 #define VXC_QUOTA_CTL		0x00100000
+#define VXC_CRYPTO_LOOP		0x00200000
 
 
 /* context state changes */