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crypto pklite
I have a friend who wrote a gadget called EXELOCK. It will throw
a password stub into the front of an of an EXE file. Now, I'm sure
it doesn't use encryption but just compares the hash of the password to
a stored value. However, I'm sure an IDEA or DES version could be implemented.
As for compression, no need to re-invent the wheel. Simply run pklite
and then run the new EXELOCK on the result.
I'll contact this person and see if I can lay my hands on the source
code for the gadget.
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PGP 2.2 Key by finger