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I was setting up my new Mac from encrypted timemachine, to my surprise, Lion start importing the files from timemachine without asking for the encrypted key. I couldn't find any documentation about this. Isn't this a security flaw and what is the point of the encryption, or am I missing the big picture?

Many thanks! Terry

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First -- the obvious question -- are you sure that the Time Machine is encrypted? Also, did you by any chance restore something from an old machine to the new (e.g. the Time Machine password saved in Keychain)? – lupincho Jun 27 '12 at 14:46

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