It depends on FUSE, which is slow and unreliable. The way TC works is rather kludgy. It creates an encrypted store on the raw device file, which FUSE then mounts as a filesystem containing a single file, a sparse disk image. You mount that image, and there's your volume. Unfortunately, disk images aren't allowed as Time Machine backup disks, so you can't use TC at all for that purpose.

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MacFUSE itself is neither slow nor unreliable. I use it extensively for both remote access (SSHFS, FTPFS) and local access (NTFS-3G, Parallels Desktop volume sharing) and it's been rock solid. Using MacFUSE and NTFS-3G is *much* faster for NTFS volumes than the OS X read only driver.... and you get write access as well.

On the other hand, some of the other FUSE filesystems are a bit flakey.... but that is the fault of those filesystems and/or the limitations of what they are doing, not the fault of MacFUSE.

If TrueCrypt on the Mac is unstable, it is more than likely TrueCrypt's fault, not MacFUSE.

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