Truecrypt is also excellent full disk encryption in case your computer is stolen
No, he has a plausible deniability plan.
I use truecrypt to encrypt lots of legitimate stuff. All my financial data is on a truecrypt volume on DropBox. And I suspect that folks with something to hide wouldn't find it hard to hide trucrypt itself.
where you going to hide it?
In another truecrypt volume?
It would be easier just to only use it via a VM booted from a Linux Live CD.