Vista - Encrypting offline files

I am running Visa Business edition on a dual core Thinkpad X60.

I am attempting to encrypt my offline files, however, I have experienced a
few serious problems as follows:

1. When I save a file to the network directory while I am online, Vista
will not allow me to access the file (I receive an “Access denied� dialog
box). I have full access and ownership of the file and have admin rights. I
can delete the file but Vista will not allow me to access it. I have a valid
encryption certificate and have backed it up.

If I unencrypt the files, I am able to save and access files without problem.

Our network administrator has been unable to provide any help on the issue
as it has him completely stumped.

Any suggestions?

2. When I select “encrypt offline files�, a dialog box appears indicating
the the files are being encrypted. However, this disappears after a few
seconds and the encryption section (Control panel > Network and Internet >
Offline Files > Encrypt your offline files) indicates that there are
remaining offline files that have not been encrypted.

How does one go about getting the system to encrypt all of the offline
files? (I am not sure that I want to based on first problem and I don’t know
if the two are somehow related.)