The oversized volume argument seems a bit silly. Does that mean owning a 1TB hard drive is suspicious if you're only using 50GB worth of space?
If you a) have an encrypted chunk of data that's 1TB, b) when subpoenaed, hand over only 50GB worth of data, and c) are using a tool that is known of it's ability to offer "hidden volumes" to supply plausible deniability, you can be damn sure that a judge is going to find that suspicious.
The more relevant question is: is it suspicious enough to permit the judge to issue a contempt citation? Well, that's a question for the lawyers, but I'd sure as hell hate to be the test case.
And no, that's not how contempt works. IANAL but Wikipedia says this: To prove contempt, the prosecutor or complainant must prove the four elements of contempt: Existence of a lawful order The contemnor's knowledge of the order The contemnor's ability to comply The contemnor's failure to comply
There's no way to prove your ability to comply with decrypting a hidden volume for as long as it remains hidden.
http://forums.truecrypt.org/viewtopic.php?t=23969 Comments: http://www.reddit.com/r/reddit.com/comments/i8dqh/true_crypt...