Basically what I want is software that allows me to
enter password number one > decrypt > logs me in
enter password number two > decrypt > deletes some data that I have pre specified > logs me in
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Basically what I want is software that allows me to
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I don't know of any such software that can do exactly what you want to. However, TrueCrypt allows you to create a so called hidden volume;
Basically, you are required to set 2 passwords where only one will unlock and decrypt the entire volume while the other only decrypts a part. The (still) encrypted part will be hidden and it's not possible to detect it as a hidden partition since the volume space is filled with seemingly arbitrary data. A little illustration (retrieved from the same TrueCrypt page as mentioned above):
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