"TrueCrypt can even create a decoy OS on your PC, which you can provides access to under duress and through the scent of the real OS which contains your sensitive data."
I think this is supposed to be something more like, "TrueCrypt can even create a decoy encrypted file or partition on your PC, which you can provides access to under duress and throw the scent off the real encrypted file or partition which contains your sensitive data."
I use TrueCrypt regularly and have never known it to support any type of fake OS. It will let you create a partition in which to store encrypted data, and then you can assign that partition to masquerade as a different file type (such as a word doc, sys file, or whatever you choose). You can then bury the partition deep inside a system folder where the average user would never dare tread. If someone was looking right at it, they would not know it because it would appear to be a regular file (you could name the file "system.ini", assign it an icon, and bury it in the Windows folder).
The dummy partition works as follows: lets say when you create the partition make it 40gigs, 30 to main partition and 10 to the dummy partition. Make the partition appear to look like a system file or whatever. The 30gig portion is assigned the password XXXXXX, and the hidden 10gig partition is assigned the password OOOOOO. Then dump all your porn on the 30 gig partition, and maybe all your old school work on the 10gig. If by chance your wife came across the file, tried to open it, and became suspicious when it won't open, you could say, "Look honey, its just my old school work", type in the OOOOOO password for the hidden partition, and it will show her the school work you have inside. Think of it as having two passwords for your partition file, one that opens the main, and one that opens the hidden portion within the main.
I don't know of any other encrypting programs that give the end user that kind of control and freedom. Obviously, I LOVE Truecrypt.