Kudos for being extra paranoid.
On the side note why not use some known open-source encryption algo?
This is not so easy as you think on windows and I want the code in C# and not as a Dll since I want my program
to work as a single stand alone .exe
I am not after bloatware where you need 5,000 lines of code, it must be fast and work on the fly so it can be
used with a socket stream so that movies and big files can be streamed across an unreliable network.
Just buffering up the data before sending it back in a fixed sized blocks on the server nodes is not really an option
and even then the client might not receive the block on the network as a full block so this is why I am after on-the-fly
encryption.