On my Synology DS111 I have several shares/folders for my files. For things which are important I have it encrypted storing the key outside of the box - storing that on the box itself, with automounting, sounds like a crazy idea. Why to bother with all the encryption if someone can just take your box, power it on and have access to your files - since they get automatically mounted...
It was not possible to use encrypted shares via NFS (at least as of synology firmware DSM 3.2) and I wanted to have unix permission visible. So I decided to use SFTP, since I had SSH already enabled.
I did that on firmware DSM 3.1 and 3.2 and it worked well, so...
Subsystem sftp /opt/libexec/sftp-server
From now on it should be possible to use sshfs to mount your diskstation! Without installing sftp you will be confronted with rather cryptic error message on client side:
~$ sshfs -d my_user@diskstation: /mount subsystem request failed on channel 0 read: Connection reset by peerUnfortunately this change in sshd_config will be lost after installing new Synology firmware. If you know how to make it permanent (apart from checking it periodically with some script) - please drop me an email.
Good luck!