How can I Encrypt and password protection backups, disc image and incremental, within Reflect so that rescue media will work ok?

Choose to edit your definition file if you already have one, otherwise just open the wizard to set up a new backup job.  Either way, click Advanced Options in the lower-left corner.  You'll find options about password protection and encryption there.  Note that you cannot retroactively encrypt backups this way, and you cannot change the password or encryption settings of an existing backup set either.  Making those changes will require you to create a new Full.