Since the original TrueCrypt discussion, which I started, is locked: I just got an email from the FSF. Here's what they said about the TrueCrypt License:

"The Truecrypt license used to be even more vague then it is right now, and it has improved, but it still isn't considered to be a free software license by the FSF. It is in fact a collection of licenses, some of which might be OK. But it also contains sections such as the following:

'3. If you use any of the source code originally by Eric Young, you must in addition follow his terms and conditions.'

But there is no further reference in the Truecrypt license text to what
are those 'terms and conditions'."

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