I decided to do a restore/backup rather than just an update with my iPhone4. I had forgotten that my Backup was encrypted. I just assumed the password would be the same as my Apple ID password, even though I don't recall ever setting one up. Well, it wasn't! After several worrisome minutes and lots of googling, I tried the very first Apple ID password and it worked. From what I understand it is one of those little Apple glitches that are known, but not addressed to the masses.
Make sure you either have a non-encrypted back up, or that you know your password. If you forgot yours and have to give several passwords a try, do not use any caps even if you set it up that way.
Make sure you either have a non-encrypted back up, or that you know your password. If you forgot yours and have to give several passwords a try, do not use any caps even if you set it up that way.