File vault won't enable

I inadvertantly turn off file vault in Security & Privacy preferences. I want to turn it back on. I clicked on the Turn On FileVault and got a message to restart. I did that multiple times, an endless loop. What to do?

Thank you Thomas, that hit the nail right on the head and your solution serves wonderfully - even more-so as one can have multiple secured file systems if required, although only the one will server me fine.
Kappy, this is my situation: I have used Macs for eons and upgraded bit by bit from one machine to another over the years. I currently use a MBP 17" for my main work and travel machine, at home I have an iMac 24" with bootcamp and a Mini on the Home Theater. Both the MBP and iMac run Parallels and have the mandatory Office basics on them. The iMac is the version with the Nvidea 9000 something or other card and in Bootcamp, running XP, it can handle pretty much any PC game that can be thrown at it. This is required with youngsters in one's house - and, well, can't say I don't enjoy a romp around some of these virtual worlds meself.
I synchronize these two using Synchronize X Pro.
At work I need to handle documents that need to be secured. However I have all my photos and audio library on both these machines as well as a NAS at home. I have tons of personal and family files. I do not want to simply encrypt my home directory, it would take an age and is counter-productive. But I DO want a location where I can store documents securely. The "sparseimage" file that Disk Utility allows me to create fits the bill perfectly. By NOT storing the password in the keychain, anyone attempting to mount the sparseimage file - even assuming they knew what it was - would be stymied by my cunningly complex and confusing password. And this assumes that they get by my equally complex login password or gain access to my HD using some sneaky side-entry.
So in the horrendous event I lose my MBP, I can feel fairly comfortable that my work files are safe.
Thanks for your help.
Lawrence

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