care to elaborate on these flaws as I am sure the corporate account I work on with which the client has US government contracts would be very keen to be aware of.
also why would MS work on security fixing its OS and then not keep its drive encryption up to the same standard?

I...just...did?
Let's go over this. Bitlocker:
1. Is closed source and proprietary, not subject to any kind of independent verification of its security.
2. Is produced by the same company that produces the OS and is integrated into it... meaning that its reliability is only as good as the OS its running on and which also hampers independent testing of the encryption scheme itself.
3. As a business matter, is included (e.g. the functionality is there) in all versions of Windows, yet it is only activated in the Enterprise and Ultimate editions (of 7, not sure about 8). One would think a more secure encryption implementation that installs with an OS would be built into it and active in all versions, seeing as BitLocker has explicit Windows dependencies...
4. and Microsoft are subject to US law. Now, I'm not entirely sure how closely you fellows have been following the Snowden releases, but they have demonstrated quite admirably that US LE and intel institutions have strong-armed their way into most of the major US tech companies (if not all) located there to intentionally subvert their built-in security measures for intel/LE purposes. Once again, I don't particularly care if the international intel / LE communities want to read my tax returns. I care, however, if my encryption software contains unadvertised ways into it. This is not tinfoil-hat conspiracy stuff here - the number of exploits the NSA alone had access to and used revealed by Snowden is staggering. Is BitLocker itself compromised? Unknown at present. Maybe not. Is there an intel/LE backdoor into systems running Windows, even with BitLocker active? Chances are very good.
All of this is not to say BitLocker is an objectively bad encryption package (nor is that what I've been saying; no tinfoil hats here). All of this IS to say that TrueCrypt was everything BitLocker was not as far as anyone can tell. Ergo, it's bloody fishy that a TrueCrypt dev would shut down the project and refer people to, of all things, BitLocker. There are a number of other commercial and open-source alternatives that resemble TrueCrypt's philosophy much more than BitLocker's, so... what happened? That's the issue at hand, not whether BitLocker is good, bad, ugly, whatever... just that it doesn't follow any of the same principles so why is it being recommended by a person who dedicated a decade to TC?