Hi David,
Well it is a smart update from a FileVault encrypted clone. But I'm pretty sure that I've booted from it before.
See this thread
http://www.shirt-pocket.com/forums/s...ead.php?t=6937 where I enquired about cloning an encrypted drive. I can't remember but I must have done what you asked and installed the OS over the top, because I say it worked!
I'm a bit confused now as to whether I have done anything different. But from my memory I've been able to boot from bootable clones made from FileVault before. I think?!
Any insight here appreciated.