Thanks everyone for setting the record straight. The Uniden scanners do indeed show when an encrypted signal is being transmitted.
In my case, and probably most cases, the scanners go by the encrypted signals so quickly you hardly know it happened.
Now generally this is a good thing, because why would you want to be bothered by hearing a garbled encrypted signal? Well, sometimes I want to know who and when they are broadcasting encrypted signals. The system I monitor seems to change when and what city they encrypt. And at times I would like to know this, as part of the scanning hobby. It would be nice if in a firmware upgrade, a feature to toggle on-and-off, not blow by encrypted signals, especially with the new SDS200 which I'm looking forward to. Right now, I have to run my PSR800 scanner to know this information.