Truecrypt on AAO: No bootable partition

Hey,
I am trying encrypt my AAO 532h-2067 running XP Home. I installed Truecrypt and tried to encrypt the system drive (also tried system partition). It encrypts fine but if I shutdown the AAO and turn it back on I will see the Truecrypt login, hit escape, and get the boot error "Error: No bootable partition found". If I type in the Truecrypt pass correctly instead, it will hang.

It does not matter if I defer the encryption and shut down or if I let it finish encrypting completely before shutting down, I will get this error. If I install Truecrypt I can restart as many times as I want without problems, I just can't shut down. Booting from the Truecrypt rescue disk to fix this will not help. Any ideas on how I can successfully encrypt my AAO? I've tried searching the forums but can't find anything relevant. By the way, I am using a clean install of XP with SATA in BIOS instead of AHCI. Thanks.

Specs:
160 Hitachi hard drive - Tested and it passed drive diagnostics.
1 GB RAM
Windows XP SP3 Home - Clean install