I check the Encrypt iPhone backup checkbox and then enter my new password twice. Then it tells me: "The password you entered to protect your iPhone backup file could not be set. Please try again." I try again and get the same error. Any ideas?
I've done it just after i upgraded itunes and it was working fine, until it somehow unchecked it self and now every time i try to check it and enter the same password as before, that message occurs... anyone else having this issue?
I eventually "solved" this by completely restoring my iPhone as new, deleting the old backup, and creating a new one with a new password. My iPhone was f'd up anyway with the mixed/missing icon bug. This is probably not the solution you want to hear, but it fixed the problem.