Hello Fran and Barkeley,
You have it right. The solution for USB sticks indeed to use the standalone version of AxCrypt instead of the ‘encrypt to exe’ feature of the old version.
You’re also right that we’re not quite there yet – the standalone version needs to work really standalone without ever requiring internet access or our servers. This is now a high priority improvement, so we’ll work and implement this relatively soon.
As for what password to use it’s a little complicated due to the sharing features, but the easy way to explain it is that what will always work is the password used the most recent time the file was encrypted. This will always work.