Time Machine restoring backed up files from encrypted folder

How do i restore older files that were in backed up encrypted folders?? i understand time machine backs up the entire disk image of the encrypted folders and can locate the older disk image in the oldest time machine backup i have but when i try to restore it it says the image size is 118 gb,when the current disk image for the same folder is also 118 gb. First off how can that make sense if i have deleted some of the data/folders from within the spare image itself,shouldnt the older disk image in time machine have a larger size?? and second, if i do want to restore some files from one of the encrypted folders, do i just click restore while in time machine to restore that folder's particular sparse image,then just unlock the folder as usual and the older files will be there?? Im very confused, with the way time machine works with latest versions of lion. it used to be so simple,you would click make backup,and then after you trashed something and needed it again,you could simply enter time machine browse to that same folders location in the past and grab the older files you needed. Now when you browse to that folder or any location in time machines past backups,the files are missing !!! How does this make sense??? How could they be removed from older backups as well as current disk status at the same time??? I cant figure out how to restore files like before. Every time i need something,like i said its missing from the older time machine backups. Very frustrating. Now with espionage,it seems it only backs up the disk spare image,so i guess my theory would be the only way to restore the older files,would be to restore the entire sparse image for the particular folder...right???
Thanks for your help
Thanks for your help