The protocol you were asking (glutaraldehyde) is called "emulsion cross-linking" which requires an emulsifier for the formation of chitosan nanoparticles. You can get an idea from this article.
http://www.ncbi.nlm.nih.gov/pubmed/12176298
On the other hand, you can also use 'triphenyl phosphate' as Ranjith has suggested.
sir,if you use sodium TPP is good cross link with positively charged chitosan and form size controlled nanoparticles after lyophlyzation of the formulation you get flakes