[Bug 25] truecrypt - Free Open-Source Disk Encryption Software

The license you quote applies only to a small portion of the software. There are several other licenses on the page you link to, including the lengthy license (the main TrueCrypt license) which is listed first and which has the legal issues. Chances are this license is not compliant with the OSI guidelines either. (They're very close, though not identical, to the FSF ones.) It's definitely not OSI Approved: http://www.opensource.org/licenses/alphabetical