How to get iTunes to quit asking for the encryption password when I've already reset the network settings on the phone.

I'm having a hard time transferring my wife's iPhone. I plugged it to my PC and it has the Encrypt local backup checked. We cannot remember the password we set and tried all the usual's with no luck. I then tried to do the directions I found on the support site that says to reset network settings but after that runs and I try to uncheck the encryption, it still asks for a password in iTunes. I suppose I can still make a backup but I would like to uncheck this for the future.