On April 14th, a partial audit of the TrueCrypt source code has found no evidence of backdoors, see:
is TrueCrypt audited yet?.
If you're running on GNU/Linux, you're better off encrypting your whole disk using
dm-crypt with the LUKS extension. For Windows and OS X, TrueCrypt seems to be the way to go.
It is open source so any backdoors are unlikely. not impossible but very unlikely.
A well crafted backdoor can hide in plain sight for years, especially in a huge code–base. That's why formal security audits are needed for critical tools like TrueCrypt. While I agree that they are more likely to be discovered and patched, we tend to overestimate our ability to notice them.