ok, so I have had this setup for sometime, however, where hak5 just covered TrueCrypt it seems somewhat reasonable to show my setup. This is really quite minimalistic and can use a lot of work, but this is basically what I use. Note, my setup currently runs under the assumption that your U3 flash drive is mounted as drive J: and drive X: is available for the TrueCrypt volumes.
http://www.narnaix.com/software/cryptsaw/U3%20Drive.rar
Upon plugging in the drive you are presented with a password request, enter 'topsecret', the drive then logs all the computers personal information into an encrypted volume 'backup.bak'. You can also press enter and skip the password to skip the logging of all information. Once this is complete, you are prompted for another password, this is 'nososecret'. This encrypted volume is not as secure as the first for optimization of speed. This is mounted as drive X: where you can store files you want to be kept secret, of course, not your most top secret files, thats what the other volume is for.
Looking at the system try you will find a gray circle with a triangle, this resembles the universal symbol for 'PLAY'. Right clicking this gives you a menu similar to the factory installed menu, only this opens quickly and is easily customizable with any software.
You will find some commonly used programs as well as 'UnMount', this will quickly unmount your drive X: to make is safe from anyone. Remember, TrueCrypt is on-the-fly encryption, so its instantaneously safe.
Because the file if mounted from removable media I recommend unmounting before you pull the thumb drive, however, this is not actually required.
