If any of you are using TrueCrypt versions past 7.1 (or possibly 7.1.a) then it appears the project has been compromised. It further appears that the installer has likely been compromised for some considerable time.
Tinfoil hat time but my guess is that the devs were served with a subpoena (much like Lavasoft) requiring them to give the US government means to decrypt hidden volumes.
El Reg is a decent starting point for info.
Moral of story is to refuse to deal with any US companies (as far as humanly possible) for they cannot be trusted.