I've used TrueCrypt successfully. LUKS (using cryptsetup) seems to work
on small partitions, but on larger ones, mkfs hangs up, so something
isn't working right there. With respect to CAAM, it does seem like it's
not well integrated yet.
Different encryption solutions work differently. TrueCrypt and LUKS
encrypt the entire device using device-mapper to provide the interface
to the encrypted device. There's also ecryptfs which is a layered file
system that encrypts file contents (though it can be set up to also
encrypt file system metadata).
If anyone has found a good solution for this, let me know!
-Kyle