According to a Droid 2 Global users complain on Motorola support forum regarding an encryption error received after trying to test ActiveSync on Exchange 2010 when tap on “agree to enable device encryption.”
Further more whenever someone tries to set up its device to encrypt everything it gets prompt with the same error. Due to this reported error Motorola decided to uphold the update for the time being and will roll again as soon as the fix it.
“There is not enough memory to encrypt device data. Please remove old or unused application data to free up some memory and try again”
If you encounter this issue stay tuned with us and we will let you know what to do next as soon as we find out more from Motorola and Verizon.