I have a backup of my device stored in iTunes. iTunes created a folder for my device. Now I have *.mddata and *.mdinfo files. The problem is that I accidentally told it to encrypt these files so now they are not viewable. I'm wondering what the best way to decrypt these files is, without losing this encrypted copy.

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Why do you need to decrypt the backup? Do you still have the iPod? Do you have the password? If you do a restore from backup it will ask you for the password and it will restore the iPod with the information from the encrypted backup:

http://support.apple.com/kb/ht1414

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This guide has a tip on how to decrypt the backup file. It only works on the Mac though.

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Here is a Windows Program and here is a Mac Program to extract iphone backups.

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