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I realize that this isn't 1028 bit or anything, probably 3 bit at best... But it gets the job done. If more security is needed look into TrippleDES or something similar... but I gather this is for learning purposes.
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Well, the 102
4 in 1024-bit encryption schemes refers to the maximum size of the key for ciphering, and as such, the original method would be only 8-bit. 1024/8 = 128 bytes, which is the maximum key-size for a scheme that is of that 'strength'. However, key-size is not the only, nor even primary contributing factor of strength in an encryption algorithm, else we'd all be using 32768-bit ciphers or the like :p
This is a good thread and project for learning the basics of encryption, though; yes.