Yes.
It is not currently possible to remove encryption from an encrypted Bitcoin-Qt wallet.
Now that you've encrypted the wallet, it will be impossible to send bitcoins out of the wallet without providing the encryption password. So, while anyone with access to the computer may be able to start up the wallet and see how much is in there, they won't be able to steal/spend any of those bitcoins unless they know your password.
Do not forget your password. There is no way to "reset" the password. There is nobody who can "retrieve" your password for you. If you forget your password, your bitcoins will remain unspendable unless/until you can remember it.
Note: As long as you know the current password, it is possible to change the password to something new.