How my company and MSFT are killing Ubuntu Linux - Please Fix!!!!

I believe you are asking for the following items: encryption of USB keys and whole disk encryption. Both of them exist in Ubuntu:
 For the USB key, see http://www.emcken.dk/weblog/archives/164-Encrypted-USB-drive-in-Ubuntu.html
For the full root encryption, you need the alternate cd and need to manually partition the computer creating encrypted drives.

If you need help setting these up, please ask a question on Launchpad Answers:
https://answers.edge.launchpad.net/ubuntu

"Invalid" is not really the status here

Corey: you misunderstood.
I am asking for COMPATIBILITY, not equivalent functionality, with:

1- hardware encryption of USB keys (only supported by a couple companies, both using WIndows software for the passwords)
2- Whole Disk Encryption (WDE), a product from PGP Corporation that enables centralized management of keys, only via Windows obviously.

Both these are liked by big companies because the lawyers can argue that even if a company laptop with financial or health records is lost (read the news lately!!), since the information is still encrypted they can claim that there is not really a loss. They also want to be able to manage the keys in a centralized fashion.

Both the above functions are usually only available through Windows software, so foresee a bleak future for UBUNTU laptops in the corporate world once all big companies get scared and succumb to the MSFT-only "solution". Please note that a Windows with WDE will not support bootable Linux.

Just my request/suggestion to improve UBUNTU.

Ok, lets break this out. There are two requests here.

1. You want to be able to plugin encrypted USB keys created on a Windows machine and have them mount correctly
2. You want to be able to use the centralized management of keys for whole disk encryption

Ok, for the former, you need to create a spec and detail the following (as well as the rest of the normal process of a spec):
1. *Exactly* what pieces of software already exist on windows and any docs about what kind of encryption they use

For the latter, you need to create another spec. This one needs to have all details you have about how the centralized management of keys by WDE/PGP works and any docs you might have.

If you need help with writing these specs, I can help you with that.

As stated in the previous comment, these are spec items as they require considerable work and new code. As such, this bug (not the ideas itself)o s not a bug and thus invalid.

I would love to help create specs if I knew exactly what was required. I am not familiar with the implementation details of the products mentioned. I figured that this is something that Canonical can negotiate and maybe create 'Restricted Drivers".

From my perspective, all I know is that the small but [formerly] growing community of Linux laptop engineering users at my (Forbes 100) company has been essentially wiped out by two requirements:

1- Use WDE from PGP Corp.
2- Use encrypted USB drives from this list:
   * SanDisk Cruzer Enterprise
   * Kingston Data Traveler Secure Privacy Edition

Both of these only work for Windows, so we are dead in the water, with only virtual machines as alternatives. They will not relinquish the specific encryption requirement due to the previously discussed concerns, which I completely understand.

I think the time is ripe for Linux to join the enterprise game and support these particular technologies.