initramfs and loop-aes

Hallo,

I have a question about loop-aes readme by Jari: is it assumed there that no
initramfs is used when booting kernel (before loop-aes setup, that use
initrd.gz)?
If so, how to deal with those initramfs images necessary to boot?
As I can't make it work, I am reading about how to create initramfs to
modprobe loop and losetup root file system... (How about losetup and mount
run time dependencies?)

I would advise to all those who try this to work with two equal partitions
or two hard drives, because it's possible that root encryption fails and
then if one has only created backup of some information not OS, he might
become really upset!

Jan