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>Right, OK, so the answer must be: they deal with it by having pre-loaded
>encryption keys, not challenge/response.

Correct

>Are preloaded keys feasible from an end-user perspective for something
>like a PICKEY? (Note my clever avoidance of the M-word... :)

Do you need to really conform to the whole DES standard?
If so, they have a lot to say about the hardware design and packaging.

Do you need a lot of keys?  You need to be able to store the keys in
volatile memory, in addition to whatever else you need in ram.

I remember we had to go through a lot of gyrations with various levels of
keys.


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