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Here is the following problem.

In general applies, the computer B can access(reading, writing and creating) to shared directory/files of the computer A.

I have on the computer A encrypted folder which is also shared on the local network. Computer A's certificate is on the computer B in Personal folder (described procedure is on http://windows.microsoft.com/en-US/windows-vista/Share-encrypted-files in the "Share encrypted files between two computers" section).

That allows the computer B to read and write to existing encrypted files of computer A. But when the computer B is trying to copy or create file in encrypted folder of the computer A I'm getting the message "Destination Folder Access Denied: You need permission to perform this action."

So, is it possible that computer B copy or create file in encrypted folder of the computer A (copying or creating is possible on non encrypted folders)?

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No. The documentation you found only applies to sharing via local media (other users on the same computer, or giving someone a NTFS-formatted USB drive). You cannot access encrypted files over the network on a standalone machine; it's only possible on AD domains.

A possible reason is that the Windows file sharing (SMB) server doesn't have access to your private keys when logging in over SMB and cannot decrypt the file, since the keys are kept encrypted with your password, which is never transferred over the network. (On Active Directory domains, the keys can be retrieved from AD.)

(This is only my guess; I couldn't find any official documentation. I also don't know why Windows refuses to transfer the raw encrypted file – possibly for security reasons, since raw access is not allowed locally either – but then, it does so for WebDAV, why not SMB?)

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  • I didn't know you could decrypt files over webDAV. I gotta try that.
    – surfasb
    Dec 20, 2011 at 0:19
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    But I can decrypt the file. Computer B can read and modify the file shared and encrypted on the computer A, but the Computer B can't create new file on the encrypted folder on the Computer A.
    – ztepsic
    Dec 20, 2011 at 18:03
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You could set a VPN between the two computers and access the shared files through the VPN. This will generally provide a layer of 256bit AES encryption. Software like Hamachi from www.logmein.com is a great example of zero config VPN tunneling.

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  • These two computers are in the local network, and i don't want to secure/encrypt data while transferring over the local network.
    – ztepsic
    Dec 20, 2011 at 17:54

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