| If you want to encrypt the entire disc (with exception of partition table and partition boot loader), you would need to embed the decryption software in the boot block of the disc. Basically, that means you have only a few hundred bytes to do it in. Possible but not simple. In any case, you are correct in that you would also have to modify the kernel and bootloader to support this.
From your posting, I'd have to say that you have a LOT of studying to do before you have enough requisite knowledge to even understand how to approach this problem, let alone implement the solution. Good luck!
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