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Thanks for the great support, that got me up and running again.  I did have an unencrypted backup.  One last thing to do.  How do I delete the old 10GB sparse bundle ? 

I installed Espionage 3 and encrypted a folder.  Now, when I try to log-in, it says incorrect password.  I tested it when I installed it, but now it's not working.  It's also not a problem as I have an unencrypted folder on another computer.  Problem is, what do I do now.  I want to delete the encrypted version and start over, but how do I do that?  Thanks!

Thank you!  I sorta figured that out after my original post - your comment confirms it.

Hi:  I like the fact that I can store superfluous files in a folder to hide it's encryption, but as soon as someone looks at my applications folder, there is the program icon for espionage.  And if I am forced to open it, there is the folder listed with my secret files.  Any idea how best to get around this?  Thanks!