That does look like a lot of fun! What platform does your proto run on? It looks pretty high-res for a ps2 or xbox game... or maybe that's just me?
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You say you don't understand, but then you go on to label why people are hating on the sixaxis as if you understand exactly why. It is for the exact...
SegaBoot generates the KeyFile for the TC container of the game on the fly, using the KeyChip, the process is really complex, but it generates a file...
segaboot (sega loader, aka the menu you see on the screen that handles game loading, and so) generates a binary file that passes over truecrypt over...