SmrtGuard feature conflict w/ Password protection & device encryption

[technomensch]

In SmrtGuard's own Security Center, they specifically recommend "Set a Password For Your Phone":

This is probably the easiest way to secure your phone, yet many people *think* their phone will never be stolen and never do it. Who cares if it's annoying to unlock it every time...your data is worth it!

After putting this off for quite some time, I finally decided to set up a password and device encryption. A few hours later, I misplaced my phone within my home, so I went to use the SmrtGuard Audio Ping feature. Imagine my surprise when I found it failing. Thankfully, I eventually found my found, but was extremely disappointed to find 2 emails saying that inbound commands were sent and received, but not ran.

I sent an email to SmrtGuard Support and received the following response:

Yes, with content protection enabled, smrtguard functions are restricted.
SmrtGuard Support

This is quite disappointing as it appears I can only have one or the other.

What happens if I lose my device and need to do a remote wipe or really needed the Audio Ping to work?

If I had to make an assumption, I would think the reason this doesn't work is because SmrtGuard is installed on the device, and when all the data is encrypted, that includes the actual SmrtGuard app. I would venture to guess that this is probably a RIM limitation, but I'm surprised that this hasn't been fixed by now.

I'll go one better. The longest the phone can go is an hour before locking up.

I typically have SmrtGuard set to backup in the middle of the night when I'm fast asleep. With this limitation, the backup will not run because the application is technically encrypted.

Other than disabling the password protection/encryption, can anyone recommend a workaround to allow for both?