"Reflections on trusting trust" [1] may be necessary here. When you install Truecrypt, do you download a packaged binary app? Or do you compile it from source? Do you trust your compiler?

Until you know what the backdoor actually _is_, please don't stop just because you audited the source code.

[1] a good summary is at http://en.wikipedia.org/wiki/Backdoor_%28computing%29#Reflec...

A bit of Googling got me:

"Is Truecrypt A CIA honeypot" http://www.privacylover.com/encryption/analysis-is-there-a-b...

Seems like paranoia is looking just in general more plausible today.