Hushmail doing nowt wrong at all
www.cotse.com better IMHO, but hey I know the chaps who run that.
That said if your break the law then the law only have to ask for the emails etc, same with any place that does encrypted email. That and frankly if they didn;t then would you realy want to be doing business with criminals.
Running any encrypted email service is very taxing with regards to knocks on the door from the FBI etc due to the fact that the World as we know it contains idiots and they do stupid things. Stupid people get caught, dont be stupid - simple realy. Basicly if you realy have something to hide, then dont let it materialy exist, be it on paper or electronicly.
All that said I'm still awaiting the first case were somebody gives the cops/police there encryption key printed out with 1 character per page in a plethero of various fonts and stacking about 2 meters high, wrapped up so pecuriously that it would be hard not to enduce a rearangement of there order. Legaly you have presented the key in a usable form, just not very practical and alas thats legaly your only obligation in the UK - to provide the encryption key.
But basicly - Hushmail doing no wrong and somebody clearly has axe to grind with them, albiet its a small axe that most people would point and laugh at in this case.