When you choose to make encrypted files available offline, you receive the following warning:
'file name' is encrypted. If made available offline, the offline copy will not be encrypted.
If you continue and make the file available offline, the file is not stored encrypted, even though the encryption attribute is still selected.
Encrypted files that are made available offline are not encrypted on the local computer. The Offline Files feature in Windows 2000 uses a per-computer local cache that is shared by all users of the computer. This means that multiple users have access to locally cached files as long as they have the required access rights to the corresponding server copies. This type of shared access prevents encryption of the local copy because encryption restricts access to a single user.