Time Machine bug - saves FileVault unencrypted

Time Machine is acting up on my MacBook Pro (all updated software, permissions fixed). It is saving my FileVault home directory onto the backup drive in as plain unencrypted copies. I verified this by cd'ing on a terminal to the backup drive, and there were all my file vault files as normal files.

When I try to recover a file in my FileVault directory though, the Time Machine "backward" button is disabled, as when there is no backup.

I think Leopard and its apps still have some serious bugs (the windowserver still occasionally hangs and eats up CPU).

Another thing I've discovered is that the browswer in Time Machine doesn't follow Apple file links, only Unix symbolic and hard links.

When I almost lost my entire FileVault directory due to a minor corruption of the file (which fortunately was fixed by fsck in single user mode) I decided to move everything but confidential files out of my FileVault directory and under its own directory under /Users. So, I put links to the migrated directories in my FileVault directory. But Time Machine's browser just shows nothing when I click on one of these links.

It's probably a feature, not a bug, since it could get very confusing being redirected when going back in time.