I used an application template to encrypt the address book. During this process an Alert was displayed that the backup of SyncServices had failed and should be re-run. So, I did this via the Global Status menu's Backup Now option.
All seemed well. Address Book and associated applications (mail, Safari, etc) were working fine -- Until I logged out and then back in. Upon login and after being asked for the auto-unlock password, I received an Alert - Will not delete folder 'AddressBook' because it is not empty! Renamed to 'AddressBook-saved'. I opened my Address book to find that all entries (hundreds) were gone.
Both the folders ../AddressBook and ../AddressBook-saved found in ../Library/Application Support appeared to have problems. AddressBook itself didn't work and the -saved version was clearly missing some files.
Fortunately, I hand not yet emptied my Trash, which had the original AddressBook folder placed there by the initial encryption attempt. I renamed the corrupt AddressBook folder and then manually dragged/dropped the original from the Trash back to ../Library/Application Support. All was well again.
Unfortunately, this has tainted my experience with Espionage. There is just no way that I can trust an application that can potentially corrupt vast amounts of sensitive data. In the above described case, I was saved by still having the original folder in the Trash. Perhaps it would have been recoverable from the ../EspionageBackups folder as well, I don't know. However, the point is that it shouldn't have been corrupted in the first place.
Maybe I'll give Espionage another go at some later revision, but for now, I'll have to remove it from my system. One scare was just one too many.
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KP