How about selecting No, since you now boot using Windows' loader?
But don't try TrueCrypt until both Windows and FreeBSD are booting successfully!
Have you tried
using the NT loader to dual-boot yet?
I'm not 100% sure I understand the way TrueCrypt works, but I think the idea is to have Windows' loader (later replaced with TrueCrypt's) on the primary master (default boot device) and FreeBSD's boot0 on the second disk, and use Windows' NT loader to both boot Windows and load FreeBSD's boot0, which in turn boots FreeBSD.
When I come to think about it, you don't really need boot0cfg since you'll only have FreeBSD on the second disk. So use
# fdisk -B ad1 from a livefs. Change ad1 if you need to. But this was probably done by your step 2.