You’re right georgectv . WD sync encrypts the data on the drive where as WD Smartware locks the drive.
I have replaced WD Smartware with Dmailer sync on my WD portable hard drive and Dmailer sync works in similar way to WD sync. But be warned – sync software is NOT backup software. You could loose data using sync software to backup your files.
So … as you you stated, files are visible on your drive but won’t appear as …
… for example, but as …
The .dml files are encrypted versions of your files. One profile on my portable hard drive contains approx. 49,000 dml files (file names 0.dml to 499.dml) in 99 folders (folders & sub-folder names a to z). So even though files can be viewed, they’re unreadable & secure (without the profile password).
Dmailer also have a free backup program called Dmailer Backup 3.0 which may suit your needs.
(PS: WD_sync which is now obsolete was written for Western Digital by Dmailer)