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I cant do backups anymore, not on phone, not with PC Companion, in PCC it says this error: "The operation could not be completed, because your phone memory is encrypted".
Only app i think of, could encrypt something is GNotes. The veird thing is, that in phone backup app, i deselect all apps, then select just 1 app (messages, google..., file explorer or anything else) and it still doesnt let me do backup by showing "An error occured during backup". What i have to do, to backup my phone again? I use ICS ...B.1.54
Restart and reset didnt help too.
any help?
Check this out
Alternatives on How to backup Xperias
http://talk.sonymobile.com/thread/36355
Don't forget to mark the Correct Answers & Helpful Answers
also there might be something blocking PCC you could uninstall it and reinstall it, given that you don't have anything stored with PCC
Don't forget to mark the Correct Answers & Helpful Answers
i did factory reset and now i can backup again using phones Backup & Restore default app, and PCC too (including Gnotes app information). After this i can only assume that my Linux Mint 12 is to blame for this, cause i tried to mount my phone there (and it worked at first).
Backup & Restore from our link didnt work on my xperia u, it shoved error that i dont have sony ericsson phone.
but well, this gave me good reason to flash > root > flash my phone, what i wanted to do since i got the device a few weeks ago.
ty for trying to help 
To fix this issue:
1. On the phone, go to 'Settings'
2. Under settings, select 'Developer options'
3. Scroll down and enter 'Desktop backup password'
4. Enter the older password and leave the new password fields blank
5. Click Set backup password and then try to backup again
6. If this did not work, you need to either guess the old password correctly or do a factory reset
perfect! it works....Thanks
Thank you so much, this was really irritating me but your idea fixed this.
THX you saved my "life" 