Encryption used by IFL

Hi,

I use IFL to back up a partition of a Truecrypt-encrypted drive - after mounting such partition in TC for Linux. But since that produces an image of the partition in unencrypted form, I also use the built-in encryption that IFL uses in creating the image.
I know a lot about how Truecrypt works, but nothing about the encryption IFL uses. Is any information available about how it works? In particular, how is the password authenticated when you restore the image? Is a copy of the password saved anywhere in the image file?

Any Suggestion Would be appreciate.

I didn't find right solution on the internet.

Reference:
www.terabyteunlimited.com/ucf/viewtopic.php?f=4&t=1022
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Thanks