They have now released an update that supports file encryption: e3-card.com/app.html and from the e-mail:
As all known, E3 card reader is multi-function pc card reader. with diffirence firmware, it has its unique function.
few weeks ago, third party release the firmware to jailbreak ps3, really nice job !
today, official team release a funny and useful function, encrypt your file with E3card reader.
HOW TO ENABLED THE MMC/SD CARD ENCRYPTION MODE
1. Plug the E3card Reader in your PC USB port and wait for the removable driver E3Upgrader
2. Copy the ResetToKernel.bin to the E3Upgrader and the E3Upgrader will dispear.
3. Wait for a removable driver Kernel appear, and copy the SD Encrypt.bin to this driver. Dettach the E3card Reader and re-plug it into your PC. You will see the E3 4M STICK, E3Upgrader and the SD Driver again. This means, the MMC/SD card encryption mode is enabled successful.
4. For the usage of the MMC/SD card Encryption Mode, please refer to the user manual.
With encrypt mode, your file can only read from your own E3 card reader, it is good for safekeep important file !
E3DIY finds PS3 USB mass-storage support issue and work-around. From their site:
Recently, some players report that after jail-breaking, if the E3card Reader removed and re-plugged in ps3 again, the system will be halted. After look deep into the issue, we find that not only PS3 but also other Sony products have the same issue that failed to handle those devices which with multiple mass-storage devices attached and removed at the same time.
So, E3DIY releases a new firmware to walk-around. You can upgrade your E3card Reader follow the instructions listed below:
1. Plug the E3 Card Reader in your PC USB port and wait for the removable driver E3Upgrader.
2. Copy the ResetToKernel.bin to the E3Upgrader, wait until the E3Upgrader disappeared.
3. Wait for a removable driver named Kernelboot, and then copy the "e3fix usb freeze.bin" to this driver.
4: After doing these, you can copy other normal function files such as the one used to downgrading or those used to jail-breaking or the one used to protect your TF card, or other application in the future.