| The above is a great answer. To expand on this (from some googling).
All of this requires root. 1) Create a sparse file (actual size depends on usage) truncate -s 100G /home/zzz/Dropbox.image
2) Create a ext4 filesystem on it mkfs.ext4 -m0 /home/zzz/Dropbox.image
3) Mount it as a loopback file system sudo mount /home/zzz/Dropbox.image /home/zzz/Dropbox-fs
4) Create / Copy your dropbox folder to Dropbox-fs sudo mkdir /home/zzz/Dropbox-fs/Dropbox
sudo chown -R zzz.zzz /home/zzz/Dropbox-fs/Dropbox
cp -r /home/zzz/Dropbox-original /home/zzz/Dropbox-fs/Dropbox
5) Start Dropbox and point it to the new location6) If we want to mount this automatically at login.
Adding it to /etc/fstab may not work because of encryption. But perhaps some script at login to mount it will work.
For example, we can create a script at /usr/local/bin/mountDB.sh and then add a line to /etc/sudoers zzz ALL=(root) NOPASSWD: /usr/local/bin/mountDB.sh
Then somehow call this script at login of user zzz. |