In this blog post I am going to demonstrate how to easily setup a virtual server at Hetzner. This setup will work for most other vServer operators as well, but some adjustments may be required. Prerequisite is that you are able to access the console of the server while booting, as you need to be able to enter the passphrase. You also need to be able to boot into some sort of “Rescue System” for the setup. This is no in-place setup. In Hetzner’s “Robot” this is pretty easy.
One thing to consider regarding security: fully encrypting a vServer might seem… senseless, as the host operator can easily copy the whole memory of the VM while running and extract the key this way. True. There is no way around this fact. My reason for wanting a fully encrypted system is more of the way that I want to be sure that the data is encrypted on the storage system. I want to protect from being unable to ever fully wipe the persistent data from disk in case I cancel the VM, the VM gets moved to a new host, or a failed disk is sent in to the manufacturer. For me, this is a compromise I can accept. YMMV.
So, let’s dive into the fun of the HOWTO. BEWARE! THIS TUTORIAL WILL WIPE ALL DATA ON YOUR VSERVER! I TAKE NO RESPONSIBILITY IF YOU LOSE DATA! IT MIGHT ALSO NOT WORK FOR YOU. USE THIS AT YOUR OWN RISK!
The following steps will partition the disk, setup LVM and LUKS, install Ubuntu 12.04 and prepare the system for reboot. Most parts can be copied line-by-line. Please beware that there are some parts in this tutorial that needs to be adjusted: UUIDs of partitions, hostname, username, and most important: network setup.