Currently Being ModeratedAug 26, 2013 7:48 AM (in response to machupicchu)
the following article talks about the filevault error message you described, hopefully it helps:
Currently Being ModeratedAug 26, 2013 9:11 AM (in response to iheartapple1970)
I tried this but the homefolder still doesn't appear so I'm unable to complete Step 6 onwards
Currently Being ModeratedAug 26, 2013 10:15 AM (in response to machupicchu)
try booting to startup manager (restart holding the option key) and then choosing the mac HD it should then prompt for a filevault password to be entered which should then unlock the drive.
if you are unable to unlock the filevault that is on the HD you will have to take it to ARS so they can unlock it by flashing the logicboard which will erase everything on the HD.