Filevault 2 encryption and USB flash drives in Lion 10.7.1

I have my harddrive on my MacBook Air encrypted with File Vault 2 under Lion 10.7.1  Seems to work fine until I try and backup using time machine. Its very very very slow. - its saying it will take days to back up 90GB  to a 256GB USB memory stick.
I thien tried to copy about 40GB of files to the stick and it was much faster - about 2 hours.
I thought that these files would be encrypted and unreadable on other macs? I plugged the stick into another mac and read the files just fine? I want them to be encryoted - does FV 2 support this  capability?

If you copy files from an encrypted volume to an unencrypted one, the copies will be unencrypted. Using Disk Utility, you can format the USB device as Mac OS X Encrypted.

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