I started use truecrypt a long time ago. I used it on both Windows and Linux machines, but sometimes I had corupted file names with strange characters.
There is very simple step, how can you fix this problem.
On Linux machine
Run truecrypt, open “Settings / Preferences” window and go to the “Mount options” tab.
There is textbox named “Mount options”, put there this attribute
From this point you will have all folder/file names in UTF-8 encoding and you will no have problems with corrupted encoding anymore.