Time Machine "encrypt backup disk" option is disabled (greyed out)
This is with a brand new iMac (27-inch, Mid 2011), connected to a Lacie 500GB disk via Firewire 800.
The only thing slightly unusual about my setup is I have the Lacie partitioned into two, a small NTFS partition, and a much larger (485GB) Mac OS X Extended (Journaled) partition. That is the partition I'm trying to encrypt in time machine, but the option is always disabled. I even erased that partition and reformatted it, thinking that was the problem (yeah, wiping out my previous backups).
iMac, Mac OS X (10.7), 27-inch Mid 2011 / 3.4Ghz Intel i7