I found the following info on this page posted by Freemans1.
http://www.htcwiki.com/page/Storage+...ryption?t=anon
Im not taking credit but I did that because it was a copy and paste deal, I didnt even put it into my own words. I really hope this helps.
Sprite Backup supports WM6 Storage Card encryption. If you are using WM6 Storage Card encryption the only way to access your encrypted data after hard reset is by using Sprite Backup. Sprite Backup Version 6.1 can backup your device and the entire contents of your Storage Card even when you have WM6 Storage Card encryption enabled. This means that if you create a backup image including the contents of your card you will be able to access all your data. Use Sprite Backup Full 6.1 to:
1. Create a backup image including Storage Card contents to your PC.
2. Make sure that you use Sprite Backup encryption to password protect your backup file.
3. If your devices suffers a hard reset you can simply restore this file and access the encrypted data.
4. You may have to use file explorer to delete the encrypted files on your Storage Card before performing the restore.
5. You can also Drag and Drop your files from your backup to your Storage Card using Sprite Explorer .
HTC users can also purchase the upgrade for only $10….
http://www.spritesoftware.com/store/...roducts_id=203
I would just move the files from sd card to your pc incase it doesnt work at least you have the menc files to mess around with more...Also check your pm.