For what it's worth, I've now upgraded to Precise Pangolin Beta 1.

This uses LibreOffice 3.5.0 Build 350m1(Build:13)

This bug does not now affect me.  I can now save and open new and legacy
password protected files as expected.

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https://bugs.launchpad.net/bugs/919659

Title:
  Can't open/save document or spreadsheet with password

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