Yes, whether its a file or an entire partition or drive, after its mounted it will show up with its own letter (because it IS a virtual drive). For example, I have my Truecrypt volume on its own partition. Nothing else on it. Because it's its own partition, whether my TC volume is mounted or not, it shows up as drive I; however, when I mount my volume (in this case the entire partition) I can choose to mount it virtually as any letter I want...so lets say P. Now, when I look at My Computer, I see both drive I and drive P. Make sense?
Since youre using a file and not a whole partition or drive, even when you "delete" it still goes into the unseen recycle bin I spoke of earlier...so it's NOT encrypted (because that temp trash folder is NOT inside your TC volume). Make sense?
Again...better to use File Shredder, or an easier way is use PGP Desktop (version 6.x.x is free and open source). It has a shredding option also that shows up in your right click menu. So you can just right click what you want to shred and choose shred. All gone.