Marc, thank you for looking into this.

I'm using Maverick, not Lucid, but do have loop-aes-utils package
installed. I've stopped using loop-aes, though, so could try removing
loop-aes-utils if that helps to troubleshoot.

As far as setting up TrueCrypt, I just followed instructions at
http://www.truecrypt.org/docs/
(click on Beginner's Tutorial).

As I noted earlier, this bug also prevents me from mounting sshfs
volumes, maybe that would be easier for you to test?

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https://bugs.launchpad.net/bugs/727220

Title:
  Command "fuse" returned error 1 (with TrueCrypt)

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