polywogsys

Create a keyfile. This could be anything (i.e.: dd'ing /dev/urandom would work, or an mp3 file, etc.)

truecrypt --keyfile-create asdf.key --random-source /dev/urandom

The following creats a 1 Mb normal (not hidden) unformatted volume encrypted with AES, and RIPEMD-160 hash. It uses /dev/urandom for the random number generator. It will display the primary and secondary volume keys after creating the encrypted volume using the keyfile asdf.key. The file it creates is called asdf.tc.

truecrypt --size=1M --type normal --filesystem none \
 --hash RIPEMD-160 --encryption AES --random-source /dev/urandom --display-keys \
 -k ./asdf.key -c ./asdf.tc

Map the volume, but don't mount it. This way we can format the volume whatever format we want. In our case Ext2.

truecrypt -k asdf2.key asdf.tc

Find out what our 'raw' device name is: /dev/mapper/truecrypt??

truecrypt -vl

Format that raw device

sudo /sbin/mke2fs /dev/mapper/truecrypt1

Unmap the volume

truecrypt -d

Mount the volume.

truecrypt -k asdf2.key asdf.tc /mnt/floppy/

Unmap/Unmount all volumes

truecrypt -d