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This question arose from using the TrueCrypt disk encryption software. When 
a file or folder is deleted from a file system, usually its just the link to 
that object that is deleted. Operating systems with a trash can/recycle bin 
facility record this deletion operation and allow for restoration of that 
object. So, if I have created an encrypted file system within a file and 
mounted it all using TrueCrypt and then deleted a file or folder within that 
encrypted volume, would the file still be encrypted? I want to say yes since 
the file is not actually moved into a trash (area which might not be in the 
encrypted volume), only a log of its deletion is kept there.