Unable to unlock encrypted disk images created with Snow Leopard using Lion

Anyone else unable to unlock encrypted disk images created with Leopard and Snow Leopard with Lion?  I know that they made changes with the release of FileVault 2 on Lion and Snow Leopard cannot use Lion encrypted disks but I thought it was backwards compatible where Lion should still be able to work with Snow Leopard created images (it was in the pre-release versions of Lion).
When attempting to mount an encrypted disk image created with Snow Leopard on Lion the normal password prompt appears but then just reappears every time the password is entered and does not unlock and mount the image.  I'm positive the correct password is being entered and it works just fine when done on a machine running Snow Leopard.

Not in cases when the computer successfully boots to one OS but produces three beeps when an attempt is made to boot it to another. If it really was a RAM problem that serious, the computer wouldn't get as far as checking the OS version, and it has no problems booting Lion. In the event of a minor RAM problem, it wouldn't produce three beeps like that at all.
(67955)

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