It took a while to figure this out :(
Upon navigating to Settings->Location & Security Settings->Set up screen lock, I found that the first two options were disabled (grayed out). I then went to Location & Security settings->Device Administration and noticed that an administrator named "Email" had control over these options.
http://www.droidxforum.com/droid-x-troubleshooting/unwanted-screen-pin-lock-question-by-blainj/
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