A 28-year-old delivery man from the UK who bought a Nikon Coolpix camera for about $31 on eBay got more than he bargained for when the camera arrived with top secret information from the UK's MI6 organization.

Allegedly sold by one of the clandestine organization's agents, the camera contained named al-Qaeda cells, names, images of suspected terrorists and weapons, fingerprint information, and log-in details for the Secret Service's computer network, containing a "Top Secret" marking.

He turned the camera in to the police.

If you look at the news, you’ll see layoffs, buyouts, bankruptcy, going-out-of-business– there are a lot of companies in trouble right now

Ebay — laying off around 1500 workers.

Corbis — Cutting 170 Jobs, as its start-up rival Photoshelter closes its doors.

Washington Mutual in trouble

HP cutting 24,600 jobs

B of A – stocks tumble as the bank buys Merrill Lync

Fannie Mae and Freddie Mac taken over by the Feds a couple weeks back

I’ve read in many places that even though the economy is headed under, tech is still going strong. But with fewer jobs overall and less confidence, tech is sure to take a tumble as well. These are tough times that aren’t going to be solved by going out and buying buttons for your favorite political candidate.

So that's what he asked for, and that's what he got. And now it's time to create some cryptographic applications for the rings. Cory and I are holding an open contest for the cleverest application.

I don't think we can invent any encryption algorithms that will survive computer analysis -- there's just not enough entropy in the system -- but we can come up with some clever pencil-and-paper ciphers that will serve them well if they're ever stuck back in time. And there are certainly other cryptographic uses for the rings.

Here's a way to use the rings as a password mnemonic: First, choose a two-letter key. Align the three wheels according to the key. For example, if the key is "EB" for eBay, align the three wheels AEB. Take the common password "PASSWORD" and encrypt it. For each letter, find it on the top wheel. Count one letter to the left if there is a dot over the letter, and one letter to the right if there is a dot under it. Take that new letter and look at the letter below it (in the middle wheel). Count two letters to the left if there is a dot over it, and two letters to the right if there is a dot under it. Take that new letter (in the middle wheel), and look at the letter below it (in the lower wheel). Count three letters to the left if there is a dot over it, and three letters to the right if there is a dot under it. That's your encrypted letter. Do that with every letter to get your password.

"PASSWORD" and the key "EB" becomes "NXPPVVOF."

It's not very good; can anyone see why? (Ignore for now whether or not publishing this on a blog makes it no longer secure.)

How can I do that better? What else can we do with the rings? Can we incorporate other elements -- a deck of playing cards as in Solitaire, different-sized coins to make the system more secure?

Post your contest entries as comments to Cory's blog post -- you can post them here, but they're not going to count as contest submissions -- or send them to cryptocontest@craphound.com. Deadline is October 1st.

Good luck, and have fun with this.

You'll have to pardon me this morning if the round-up seems a bit off. I'm still a little stunned at the spectacle of an arena full of (seemingly sober and sane) adults chanting, "Drill, baby, drill".

So let's see, what's in the news? Well, last night Republicans trotted out a Massachusetts venture capitalist and governor, the former mayor of New York City, former executives of eBay and HP, and an Alaskan neophyte pol who as mayor of a small town delivered $4,000 in federal pork for every man, woman, and child, in railing against coastal elites and Washington politics, while supporting a candidate who's been in the Senate for 26 years.