Hi
Thanks for your response.
As far as my understanding the "fsencrypt" will be used to encrypt the files and folders which are part of the QNX 
system.

The usecase that I am trying is

Encrypt a folder/directory (with subdirectories and files inside) in a host operating system running LINUX.
This encrypted folder/directory should be decrypted in the target operating system which will be running QNX.

I am able to implement the above usecase on a LINUX HOST and LINUX TARGET system using dm-crypt + LUKS (cryptsetup). but
 not on QNX TARGET since cryptsetup is not there.

Thanks
V.Muthusubramanian

Is there a link to download fsf-merkle.so?  Thanks.