USB stick encryption using Linux -

In case you will loose your USB stick, all data stored on it will be lost and what is more important they will be most likely in hands of some other person which will then have an access to your private information and use this information in any way s/he sees fit. This is one of many fears of USB stick users.
This is a companion discussion topic for the original entry at
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Learned how to do this from your guide, big thanks!

One small error did stop me for a few times and that is that this command did not work because of unknown file system. # mount /dev/mapper/private /mnt/private

After running # mkfs.fat /dev/mapper/private I was able to follow the guide with the step above.

Is this the missing step that is needed or does this make the USB less secure?

EDIT: I did run # mkfs.fat /dev/sdX1 before # dd bs=4K if=/dev/urandom of=/dev/sdX1
Is that the right order?