JSI Tip 2506. You receive 'Access is denied' when encrypting/decrypting?

When you try to encrypt/decrypt, you receive a message similar to:

Error Applying Attribute

An Error occurred applying attributes to the file:

<Drive:>\filename

Access is denied. 

When you press Ignore, the operation you were performing doesn't happen.

One possible cause is that the System account does not have Write permissions on the System Volume Information folder. EFS uses the System Volume Information folder on each volume to record a log file.

To fix the problem, grant the System account Full Control on the hidden System Volume Information folder.

NOTE: To see the System Volume Information folder, use the Tools menu in Explorer and press Folder Options. Clear the Hide protected operating system files box on the View tab.