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Have you ever tried to encrypt a file located on a file server? Unless you have enabled that server for delegation, you will not be successful (the error below is what I got when I tried):

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Error Applying Attributes
An error occurred applying attributes to the following file:

K:\filename.xxx

The requested operation requires delegation to be enabled on the machine.

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I found some information on this and was able to get it working. What you need to do is to delegate the file server:

An excerpt from a Microsoft How-to Article:
To enable a remote server for file encryption

  1. Open Active Directory Users and Computers.
  2. Locate the remote server name, right-click the remote server name, and then click Properties.
  3. Click the Delegation tab.
  4. Select the Trust this computer for delegation to any service (Kerberos only) option.

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I had to log off and back on again to make this change take effect, but I was able to encrypt a remote file after that.

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