7-Zip uses AES with a 256-bit key. That's pretty good. I use it because the compression is helpful. When I tried using TrueCrypt for general backup, I had trouble fitting what I needed into a 4GB volume, and anything bigger wouldn't be accepted by the microSD card (because they use FAT).
I classified my data and the only things that really need encrypted fit in a small volume. You could easily separate into multiple smaller volumes or format the microSD in ext rather than FAT.
I used a small volume to make syncing to my phone easier, EDS lite will open a truecrypt volume, the OpenDocument or AndrOpenoffice to read the files.
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