Thank you for the response. I managed to get the JCE installed by using the JCE from:
http://www.oracle.com/technetwork/java/javase/downloads/jce-7-download -432124.html
It seems that CF 10 is very particular about the Java version you are using. We are on JRE 1.7, and so only JCE 7 will work. all others fail for us, even recent 1.6. There are many combinations of files, and getting the right one is not easy. Oracle's download page is also awful and does not explain well enough what version their files are for.
Adobe, please create a FAQ to help people with this.