The Virtual Hard Disk (VHD) format is a publicly available image format specification that specifies a virtual hard disk encapsulated in a single file, capable of hosting native file systems while supporting standard disk and file operations. They are commonly used as part of the Hyper-V feature of Windows Server 2008 R2, for example. For more information about VHDs, see Additional references. You can use Disk Management to create, attach, and detach virtual hard disks (VHDs). Membership in Backup Operators or Administrators, or equivalent, is the minimum required to complete these procedures.

Create new Virtual Hard Disk and attach it as your local drive.

The virtual hard disk is attached now. Initiate the disk and assign letter & format. I can now encrypt it with Bitlocker and password.

How cool is that? No TrueCrypt anymore for me….