I need to encrypt a guid and the encrypted string length should be 32 char max, not more than that. Please suggest me an encryption method available in C# for that.
I was using AES in CFB mode, as in Code Project, but that is producing 64 char long.
Well, a GUID is inherently 16 bytes of data... so that's what you should encrypt. That's a single block in AES. As per Reid's comment, the exact size of the output will depend on how you've configured things, but to convert the result into text, you'll probably want to use base64 if you need ASCII text with a fairly minimal size.
Base64 allows you to use 24 bytes to produce a 32 character result - so you should try different padding/cipher modes until you find one where the output is 24 bytes or less, if this 32 character requirement is a "hard" one (and you need ASCII; if you don't need ASCII then there's a lot more room to play...)
See more on this question at Stackoverflow