Hey @dougall -
FLO core will generally only ask about unlocking your wallet if you try to send coins. You can use the debug interface within the FLO core program to verify your encrypted wallet password using the
walletpassphrase command. See this StackExchange thread for more info: https://bitcoin.stackexchange.com/questions/9249/unlock-a-bitcoin-qt-wallet/44073
As for the wallet backup function not working, that is strange, I have not encountered it not working before. It might be due to a permission setting on the target directory or on the actual program itself that restricts its access to writing a file to your chosen directory.
The wallet.dat file is your wallet. You could make a backup by:
- Closing the FLO core client and waiting for it to properly shut down
- Navigating to the FLO data directory
- Copying the wallet.dat file to somewhere safe
Exactly the same as with bitcoin: making backups of a wallet file is incredibly important and ensuring your backup and recovery process is sound goes a long way.