I have some of management using a Home Folder on one of my file servers. A couple of them would like to encrypt their files/folders. When they try they get the following message:
An error occurred applying attributes to the file:
U:\test.jpg
The requested operation requires delegation to be enabled on the machine.
I wish to clarify this since I never saw it mentioned anywhere - the specific servers you need to trust for delegation to make this work are the domain controllers. That is, the server you wish to enable this on must be trusted for delegation to Protected Storage and CIFS on all of your domain controllers in your domain (in Windows Server 2003).
Usually I have to log off of the server and the client to get it working quite right. In one test scenario I had to reboot to get it working. But in all cases it's the services on the domain controllers that I had to trust for delegation to.