Yes it does have encryption and you just need to set the hard-drive password. Basically everything is written encrypted to the drive regardless of a password being set or not. When you set the hard-drive password, you are then protecting the keys with a password, so the contents can't be decrypted unless the keys are unlocked.
Intel seem to have some issues with hard-drive passwords on their own mother boards, despite the irony that they promote their own SSDs security abilities, so hopefully you either have a non-Intel motherboard or one of the ones that supports it.
Thank you for the response. Can you direct me to the Intel documentation that shows the AES encryption is available on the SSD 330's.
Phil, this link no longer works? I'm getting mixed information from Intel Tech Support and what you've said here. They claim only the 320 series and 520 support AES?