[whakojacko]

The unmentioned big issue with truecrypt is that encryption messes up dropbox's ability to do just do diffs, so syncing is noticeably slower. I'm fine with that though, because the (important) data I keep there is only updated 1 or 2 times/year.

[sigil]

Yes. I did an experiment to see just how much the diff was amplified by TrueCrypt. For a 1MB file change inside the TrueCrypt container, DropBox would have transferred 8x the normal amount. [1]

Fine for scenarios like you mention, but the "Everything" option suggested by the article is probably not a good idea.

[1] http://news.ycombinator.com/item?id=2546626