Problem solved...

The target volume is an AirDisk (on an Airport Extreme). The latest Airport upgrade seems to have scrambled the passwords and allowed Guests to read any files, instead of the previous "no access".

THanks for the advice.

After upgrading to 1.0.1, I cannot add to a pre-existing archive. The activity panel is stuck saying "waiting for archive". The log file says "waiting for permission to open archive".

This archive was started with a demo key. The first try was with this key, I upgraded to a permanent key with no change.