10.7.2 Update Problems with Filevault

I updated my 17" 2010 MBP to 10.7.2.  After I started the install I left and came back an my mac was shut down.  I tried to reboot, entered my user name and password.  Then I got a circle with a line thru it.  I reboted holding command r.  I reinstaled Lion.  When the reinstall was done everything was back but I still had 10.7.1.  I tried again with the same result.  Next time I erased my drive, reinstalled Lion, and imported my data from a time machine backup.  Once this was done everything was back and I had 10.7.2 instaled.  Then I saw that File Vault was turned off.  I turned it on and rebooted.  Same result as the failed update.  This time I opened disk utility after the command r reboot. and found an option to turn encription off.  I did that and was able to boot back into 10.7.2.
Something must have happened to my backup drive while turning off the encription because now that drive won't mount anymore.  Does anyone know what I could do to repair that drive so that it's usable without wiping the drive?  Here are the errors I get when I check the drive with disk utillity.
Invalid Volume Header @ 0: incorrect block type
Invalid Volume Header @ 1999736188416: I/O error
disk2 is not a CoreStorage volume
Error: Storage system verify or repair failed.
It would also be nice to be able to use FileVault.

try going into the recovery partition and reinstalling lion.
when rebooting hold cmd R you'll be taken to the recovery partition. I find that lion will automatically connect to wifi when in this mode. make sure you untick wifi or make sure your connected to your server and not someone elses before you proceed. if everything is ok there, Choose the disk utility first and run it on the drive you're going to reinstall Lion on. after that, reinstall lion. It may take a while to install lion since it takes it from the internet. if your internet connection is less then par you might want to plug it in via ethernet or I've heard people doing it in their local apple store.

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