It is pretty deeply embedded. I currently have the system running with Freescale's RTOS MQX (not embedded Linux). I don't necessarily need to code it myself, but I would need the source so that I can compile it in.
I have the system connecting to a server over a WLAN, and I don't want people to be able to read the data as it is being sent back to the server, or any commands from the server.
The data isn't stored on the embedded system, I let the server take care of that, so I am not worried about encrypting the local data, just as I send the data out or receive it.