How to use TrueCrypt and Skydrive (or Google Drive, DropBox, SugarSync, etc.) to encrypt your sensitive files and store them in the cloud – making them NSA proof and accessible anywhere. Protect your Intellectual and Creative Property. Here’s how.
Download and install TrueCrypt. http://www.truecrypt.org/downloads
Sign up for a free Live account at https://live.com and then download and install the SkyDrive application.
Launch TrueCrypt and click Create Volume.
Select Create an encrypted file container and click Next.
Select Standard TrueCrypt Volume and click Next.
Click Select File.
Select Your SkyDrive folder and type in a name for your new encrypted document folder – in this case PrivateFiles.tc – and click Save.
The bigger the volume you create the longer it will take to synchronize to SkyDrive and your other computers. I would recommend
32 MB can store a lot of files, click Next.
Type in your password click Next.
Of course, the stronger the password, the more secure your encryption, but don’t forget your password. Click Yes.
Click Exit and wait for the container to synchronize with SkyDrive. When it is synchronized, the container will have a green checkmark next to the name.
Now that we have an encrypted container for our sensitive files, double click it to open and select a drive letter to assign to it while it’s open. In this case we are using the drive letter P:. Click Mount.
Type in the password you used when you created the container.
Go to File Explorer and double-click on Local Drive (P:).
Now you have a folder that you can create in or copy files to.
When you are done creating or working with files, go back into TrueCrypt and click Dismount.
Then click Exit.
Update: Be sure to go back in to TrueCrypt Settings->Preferences and uncheck “Preserve modification timestamp of file containers”