Do encrypted Time Machine backups work across a network?

I see that Lion offers the option of encrypting TIme Machine backup volumes, which seems like a Good Thing.  After reading up a bit on this, it seems clear that it will handle the situation where the backup volume is physically attached to the machine being backed up.  However, I've gotten mixed signals about whether this will work with networked clients.  I have a server with a TM volume, and a number of machines on my network use that server and its disk for TM backups.  Can I encrypt the TM volume in this situation, and will Time Machine be able to back up from those clients to the server?  I can't think of any reason why it shouldn't work, but, like I said, the overall story isn't completely clear.  Thanks for any advice!

There's nothing in the Help or other documentation I can find.
Just that OSX can't do it from the Mac that's doing the backup. 
There was a similar post the other day; I asked the poster to let us know whether it worked, but haven't gotten an answer yet.  So if you try it, please post back with your results.
I do agree with coocoo, though -- if you want to do this, keep "secondary" backups, not encrypted, just in case.  See #27 in Time Machine - Frequently Asked Questions for some suggestions.

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