Also have other issues regarding two step verification and long file names.
With respect to two step, after logging out of desktop, insync starts but cannot sign into google account, which has two step verification turned on. It displays a message that it is signing on but nothing happens. The work around is to un-install and re-install insync.
With respect to long file names, insync reports that certain files cannot be synced as the paths are too long.
@Jackal: Apologies for not replying sooner. For the long file names, there is a current limitation with encrypted file systems where the maximum filename is limited to only 143 characters. Please see here (https://bugs.launchpad.net/ecryptfs/+bug/344878) for details. Unfortunately since this is a limitation of the underlying file system we have no control over it.
For the truecrypt volume, the user that Insync is running as might not have enough permissions to access it. Please confirm.