So are you just syncing entire truecrypt .tc files to Dropbox? Does that work incrementally or does the entire .tc file have to get resent every time you modify a file within?
No, only changed blocks are resent. The scattering effect of Truecrypt encryption plus the relatively large blocksize does amplify the number of changed blocks somewhat.
I always assumed it wouldn't work incrementally, but it seems to sync my 200MB tc file too quickly to be uploading the entire thing when I make a small change. Perhaps someone who actually knows something about encryption can speak to this. Does every byte in an encrypted volume change when a piece of data changes? I guess that would be too inefficient to be the case, no?