Disassembling a .PRC file is trivial. There are freeware disassemblers that do 
a so-so job and a commercial interactive disassembler (IDA) that does a 
relatively superb job.

Figuring out what the original .C source was takes just a little bit of 
experince. I don't know 68k assembly language well enough myself, but just from 
the mnemonics of the instructions it is usually possible for me to figure out 
the original C algorithm. But, then, I have a 17-year background in 
reverse-engineering, although not for this platform but for others (MS-DOS, 
WordBasic, VBA). Still, it isn't very difficult and a reasonably intelligent 
person can learn it with a bit of exercise.

The attacker will have a slightly (only slightly) more difficult job, if the 
program is written in C++, instead of in plain C. His job will be significantly 
more difficult, if the program is written in a language that relies on a 
run-time library (usually some - but not all - variants of BASIC).

But to answer your original question - no, I don't know of a code obfuscator 
for the Palm. Personally, I've always thought that trying to hide your 
algorithms is usually a waste of time that can be used more productively 
elsewhere. A determined attacker will always manage to reverse-engineer even 
the toughest protection. If you want to keep something secret - don't give it 
to others.

Regards,
Vesselin
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