How to Encrypt external drives with FileVault 2?

I can't find an option in FileVault where one can encrypt an external hard disk. Has anyone tried this?
On another side note, I've also tried encrypting my Time Machine backup, but the option to do so is greyed out in the Time Machine preferences.

sorry, should have looked before I slept, or leaped, or something like that! 
I thought that control was in a different location in the Time Machine Preference Pane - obviously, to even see the checkbox for encrypting, one has to unlock the lock.
however, having looked this time, the checkbox remains greyed out until the Time Machine volume is selected in the list above the checkbox.
does this solve your issue?
cheers,
Roy

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