The problem with stuff like this is, I'm not going to look at it. This story came about in part because Coda Hale (another security pro) posted a message to Twitter, linking to the crypto code in Diaspora with an abstract "uh oh". It was warranted, I posted a message to that effect, and got an inquiry, which was more properly addressed by Patrick, who has just provided Diaspora with several thousand dollars of free consulting.
What was the problem I was getting at? Oh, yeah: Diaspora has no apparent access to the software security expertise they need to pull this off. I looked at it for 17 seconds, rolled my eyes, and stopped reading. Maybe someone at iSec Partners will take this project under their wings. But why? Most software security professionals are up to their ears in interesting projects that aren't attempts by college kids to take on Facebook.
More than a few of those professionals are now busy working for Facebook.
This is a dumb idea for a project.