Step three: Set up tracking for your computer
One of the downfalls of FDE drives is not being able to hunt down someone who has stolen your computer. Your data is protected, but your actual computer is gone. To be able track someone who steals a locked down computer, install a hidden volume operating system. This is a lot more advanced than the steps above, but if you follow the TrueCrypt instructions you can create two operating systems that open with two different passwords, just like the closet/bank scenario. This alone can be useful for protecting your data for advanced needs or baiting a thief. Create a strong password for your normal operating system and "password" for a second, dummy version of the operating system. Now, on the dummy system install Prey Project's open-source laptop tracking tool. This tool uses Wi-Fi and IP addresses to find your stolen laptop for free.
Now if you computer is stolen A) the thief swaps out the drive and you never see it again, all while your data is protected or B) the thief guesses the password (who wouldn't try the most-commonly used password, "password"), logging into a clean OS with Prey installed allowing you track him down, all while your actual data is still fully protected in the other encrypted OS installation.
The three steps in this layered security approach really are very straightforward. If you have any troubles, more information can be easily found on TrueCrypt's website or Youtube. Just remember if you don't encrypt -- and encrypt properly -- then your data is not really protected.