If your client is that thoroughly compromised, you are likely boned already and should change your passwords and start over as well as nuking the client from orbit.
The KeePass database is already protected and while encryption would protect the KeePass executable from modification, using a portable TrueCrypt installation seems to just move the burden out to either compromising the TrueCrypt client in a similar way or simply waiting until the drive is unlocked to compromise the KeePass client. While this claim should theoretically add a marginal level of security, it seems like overkill to me. When you insert the drive, it has the software there needed to access it.
No, there is a portable option that basically puts the files necessary to access the encrypted partition on the drive in an unencrypted format. It certainly is sound advice, you aren't going to be opening yourself to anything I can see from following it, but it might be overkill depending on your needs.
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