Can I copy or move an encrypted file or folder across the network?
No. When you attempt to gain access to a file on a shared network resource, the following error message may be displayed:
This behavior can occur if the shared file was encrypted by another user using the Windows 2000 Encrypted File System (EFS), even if you have full access to the share. To resolve this issue, the owner of the file must decrypt the file on the network share.
You can use EFS to encrypt files on remote servers. However, EFS encrypts files on only the hard disk; it doesn’t encrypt data that users transmit over the wire. To encrypt data you transfer over the network, you must use a method that encrypts all TCP/IP client communications (e.g., IP security) or offers similar protection (e.g., Secure Sockets Layer – SSL).
You might also want to read the following related articles: