I installed my app on the emulator with 2.2 and onto the sdcard. When I browse via adb shell, I can see that the encrypted app file lies under /mnt/secure/asec/com.myapp-1.asec but it also lies as plain apk file unencrypted at /mnt/asec/com.myapp-1/pkg.apk as well and I can do a 'adb pull' without special permissions and unzip it to see it's content.
Unfortuntately my N1 is in repair and I cannot check on a real device right now - but wondering, why can I still access the plain apk so easily (at least on the emulator)?
(Not sure if this question is supposed to be asked on StackOverflow or on ForceClose.com, but I figured it's more related to development and how to secure/encrypt your app as a developer, therefore I'm posting it here.)