Bootable USB – How to Create with Files in Subfolder

After spending 4 hours trying to fix the same issue (I accidentally overwrote TrueCrypt's boot loader with grub...) I finally found a way to make this work with grub4dos on my 64bit Asus Eeee PC:

It's roughly the steps described at http://stdout-dev-null.blogspot.fr/2010/02/truecrypt-rescue-disk-on-usb.html except that the grub4dos install procedure that is described there is not working so the way to make this actually work is to use an ISO that already installs grub4dos properly for you such as the ultimate boot cd: http://www.ultimatebootcd.com/download.html

1: Follow the steps to put it on an USB stick: http://www.ultimatebootcd.com/customize.html

2: Add your TrueCrypt recovery .iso image at the root of your drive (name it tc.iso)

3: Edit G:\ubcd\menus\grub4dos\main.lst (where G: is you usb stick) and add the following at the bottom:

title TRUECRYPT RESCUE DISK 
find --set-root /tc.iso 
map --mem /tc.iso (hd32) 
map (hd0) (hd1) 
map (hd1) (hd0) 
map --hook 
root (hd32) 
chainloader (hd32)

You may need to adapt the map part of the config above because the truecrypt recovery will only write to 'drive 0' (I'm not sure if this is particular to my setup)

(by default drive 0 is the device you are booting from - your USB stick)

Then boot from the USB stick, select grub4dos menu (at the bottom) then select TRUECRYPT RESCUE DISK The TC boot loader will start asking you for your password, ignore that and use the recovery options.

Note that in my case I had to recover the boot loader AND the volume keys else my password was not recognised. Then Windows 7 x64 happily booted without issue.

You did all right. Make gpt table with fat32 and copy all data from iso on it. But you also need to set flag "msftdata"(not "boot") on this partition with e.g. parted.