Crypt Manager is composed of three parts:
A python module called cryptsetup.py
A command line tool called crypt-manager
A GTK interface called gcrypt-manager
An extension to the GNOME file manager Nautilus
Install Crypt Manager in Ubuntu
sudo addgroup your-login fuse
sudo apt-get install encfs python2.4-dev python-nautilus subversion
svn checkout http://crypt-manager.googlecode.com/svn/trunk/ crypt-manager
This will complete the installation part now if you want to open Crypt Manager go to System -> Administration -> Encrypted folders or you can type the command in the terminal "gcrypt-amanger"
Once it open you should see the following screen.If you want to encrypt the folder click on Encrypt.
Once it open the encyptwindow you should see similar to the following screen here you need to select the folder and enter the password for this and click on apply
Now you can see the encryption is in progress bar as follows
If you want to decrypt select folder and click on decrypt.