npish,
Yes once you create a TrueCrypt volume you will access it with a password (you can also use a keyfile). Just to be clear, you don't actually encrypt existing directories; you create encrypted container files (that will function just like directories) and then move your files into them. I know it's a small detail, but I don't want there to be any confusion.
To access the files on another computer, I'll point you to
this section of the TrueCrypt user manual. Basically you create your encrypted volumes on a USB, add your files to the volumes, and then add the TrueCrypt executable to the USB drive (not in the encrypted volumes).
If you encrypt the entire USB drive, you won't be able to add the TrueCrypt executable so you'll need TrueCrypt already installed. However, it sounds like you're just looking to create a few encrypted volumes.