True crypt is really easy to use.download it and read help.it has a really nice tutorial with screenshots.i am going to explain how it works to encrypt a container(system encryption and partition encryption is also possible but a bit advanced). First the program wizard will ask you to create a secure container i.e. choose the size and location of secure container on your drive.lets suppose you choose to name the file avatar.avi and place it in your movies folder choosing a size of 2 gb.Now this 2 gb space will be written by random data and is available for use.the file will just lie in your movies folder ,you can copy it to other drives or cd.now when you start truecrypt you have to mount the container by selecting it and by providing the password.the container will appear as a partition on your MY COMPUTER location.you can drag and drop files in your container.they are encrypted on the fly.when you are finished hiding or accessing data you can unmount the drive.simple enough!
Now to answer the poster about doubting true crypt.true crypt is totally open source and the code is available for inspection.Bruce SCHEINNER who is an independent authority on encryption has studied the code and found no backdoors.the writers of the code are totally anonymous and do not reveal their identity.In cryptographic software open source code is always better to rule out backdoors provided a competent person examines it.A private company may build a back door in software and may be forced by the law or social engineering to reveal the backdoor.
True crypt can use AES, AES+twofish,AES+twofish+serpent algorithms.These are very strong encryption standards.I think this post has become too long,dont want to go into details of cryptology but the BRAZIL SECRET SERVICE and THE FBI have failed to break truecrypt.There is some talk on the internet about NSA building a 100,000 k supercomputer botnet to crack advanced encryption but we dont know its existence or its capabilities for sure.I am sure nobody in india can break truecrypt provided the passphrase is secure and random.Search on the net for FBI FAILS TO CRACK TRUECRYPT.its intereting reading.More questions on encryption are welcome!