On both the 8700 i am using via USB, v4.5 and an 8120, v4.3, there are two options above the Content Compresion.
I have Password, with various options and then "Lock Handheld Upon Holstering".
Which HH and which OS are you using? It may help someone else who picks up this thread.
BES, 4.1.7, was SBE now full BES
Windows Server 2003, standalone