Hi, Based on my test, I can drag and drop the files from encrypted folder to any non-encrypted place. Can you access these encrypted files? Please boot your computer in Clean Boot Mode to test again. Juke Chou TechNet Community Support

I have a single folder (and contained subfolders) set to encrypt using EFS. This appears to work fine when I cut and paste from a non-encrypted folder to the encrypted folder, but dragging and dropping in Windows Explorer results in a 0 byte file which disappears. Is this normal?? Windows 7 Professional, Service Pack 1, Workgroup only. Everything located on Users... which is on the C drive. (Reposted from answers.microsoft.com)

Hi, Based on my test, I can drag and drop the files from encrypted folder to any non-encrypted place. Can you access these encrypted files? Please boot your computer in Clean Boot Mode to test again. Juke Chou TechNet Community Support

Hi, Have you checked the Processes running in Task Manager? Is there any other process starting at that time? Compare the processes difference before and after appearance.Juke Chou TechNet Community Support

Hi Juke, I used msconfig to turn off all non-MS services and rebooted. Things then seemed to work and I spent a day playing binary search to find out which particular service was causing the problem. It turned out that the only reason a clean boot seemed to help is that the behavior was time-dependent. Dragging a non-encrypted file to an encrypted folder worked for a few minutes, and afterwards would fail as described above. Thanks, George

Hi, Have you checked the Processes running in Task Manager? Is there any other process starting at that time? Compare the processes difference before and after appearance.Juke Chou TechNet Community Support