Is encrypted data exposed?

Using Win XP Home SP2

I have a couple of DriveCrypt 4.0* encrypted containers and an encrypted partition. If I use applications against the data in the encrypted areas, eg, word processors, presentation apps, image viewers, spreadsheets, etc:

1. How can I tell if some sensitive data is being saved/cached, etc, in non-encrypted areas of my hard drive?
2. If the apps are installed within the encrypted container/partitions, is there *still* a chance of sensitive data making it into non-encrypted areas of my hard drive?

* I think it's version 4. The Version tab of the executable's Properties window shows Version 3, but the program's title bar and Help file shows Version 4.

Thanks
EdP