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Jan 7, 2014 1:55 PM in response to Mon_Cherieby matt00,Hey Mon_Cherie,
Thanks for the question. I understand you have some questions pertaining to iTunes encrypted backups. The following article may help to answer these questions:
http://support.apple.com/kb/HT4946
iTunes and encrypted backups
You can protect your backup with a passcode using the Encrypt Backup option in the Summary pane. Encrypting your backup will back up your Keychain. This way, email account passwords, Wi-Fi passwords, and passwords you enter into websites and some applications will be remembered when you transfer to a new device. Learn how to create and restore from a backup.
When your backup is encrypted, you'll need to enter the password when enabling or disabling encryption or when restoring from this backup.
Warning: Make sure it's a password you will remember or write it down for safekeeping. If you encrypt an iPhone backup in iTunes and forget your password, you can't restore from backup and your data will be unrecoverable.
If you can't remember the password and want to start again, you must perform a full software restore and choose set up as a new device when iTunes prompts you to select the backup from which to restore.
Additional Information:
iOS: Troubleshooting encrypted backups
http://support.apple.com/kb/TS5162
Thanks,
Matt M.