Since v1.0.7 you cannot send funds from a lite encrypted wallet anymore. You need to decrypt your wallet every time you want to send funds from it and then encrypt it again with a new password (for every transaction), or to leave it not encrypted all the time.
Are you really having this issue where you have to encrypt/decrypt everytime? I was aware there was a one time issue, but I wasn't aware that anybody was having to do it repeatedly.
happened to me multiple times
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