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I have filevault turned on, but when you empty the trash normally, does that mean that software such as norton can recover the decrypted file in another account, since it was decrypted with it was emptied?
The file is only decrypted when you open it and it is read into memory. It is never decrypted on the disk. You deleted the encrypted one. Actually with FileVault your complete home folder is a single encrypted file - an encrypted disk image. Not many single encrypted files.
Nasrudin sat on a river bank when someone shouted to him from the opposite side: "Hey! how do I get across?" "You are across!" Nasrudin shouted back.