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I want to encrypt whole disc on a laptop with a keyfile. Put the keyfile on usb flash drive. Next time, when user tries to boot the machine, first it requires to plug that usb drive which consist decrypt keyfile and then decryption password to get it logged on.

Is is possible through TrueCrypt or any other Open Source utility?

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what OS/filesystem? –  Journeyman Geek Dec 22 '11 at 2:32
    
Windows 7 with NTFS –  Kamaljeet Kumar Dec 22 '11 at 2:45
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Note: Keyfiles are currently not supported for system encryption.

From the TC Page

dmcrypt for linux is able to use keyfiles as far as I know, I don't know about any free solution for windows, that is able to do it.

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