If I restore my system using Windows restore to a point prior to implementing Truecrypt total disk encryption, will Windows 7 fail to boot due to the fact that the Truecrypt drivers are no longer installed in the prior restore point?

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I'd expect problems (and wouldn't do that). It's likely that it could happen, do you have any need to do such a restore?

Now, I'd never recommend system restore. It happened to me that I had files that it deleted, sometimes I didn't knew what it was doing, and others, it didn't restore what it should. If you can, move your data to a separate drive/partition, periodically make backups (especially of your most important data), and reformat your windows partition once in a while, better yet, keep a system image ready to recover from.

But if you insist, make a drive image, try to do the restore, and if it fails, restore it.

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