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Help Data Encryption setting is missing

When I first got my phone a month ago or so, the Data Encryption option (under Settings: Location and Security) did work. I turned that option off because it interfered with GPS, but now I'd like to endrypt my SD card. The option is gone! Can anyone tell me reasons why the Data Encryption option is no longer under Location and Security?

In that time, I believe I've had one update (to 2.3.6 from... 2.3.5?) and of course have installed a number of apps and removed some of them. I have Lookout installed, but didn' thave it from the get-go.

So is this an odd downgrade caused by 2.3.6 (I find that doubtful), a malware-caused problem, or something else?

many thanks for help.
Android 2.3.6, stock Gingerbread Build EK02,
 
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