Access Denied Creating Encrypted Files
When copying a file to an encrypted folder, you may receive an “Access Denied” error. However, if the file already exists in the folder, the copy operation succeeds.
Also, if you attempt to set an unencrypted folder as encrypted, you receive “Recovery policy configured for this system contains invalid recovery certificate”.
This may occur the systems are members of a Windows 2003-based domain, and the domain recovery agent certificate has expired.
This article misses the final step which is to run gpupdate /force on the client workstation also (in an elevated command prompt for Windows Vista and above).
On Small Business Server 2003, apply the changes to Default Domain Policy under Group Policy Management, Forest: [domain], Domains, [Domain], Group Policy Objects.