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Are passwords encrypted in transit

For audit purposes, I need to report that policy has set "Passwords Encrypted in Transit" on over 5000 Windows servers. Operating systems range from Windows 2003 through 2012. I have been unable to find a registy setting that corresponds to this policy setting. Any ideas?
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Alex
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They are encrypted using Kerberos encryption if I remember correctly
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I don't need to know how it's done, I need to know how to report that it's been done.
It is a function of the operating system (kerberos)
It's in as default IIRC
See if the Kerberos status show up in the HTML file generated by the command
gpresult /F /H GPreport.htm

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That file should be made in your user folder if that's run from the standard CMD window.

If so, a FOR/DO batch should be possible that uses a list of all the servers as the input.
ERROR: Invalid argument/option - '/F'

The /H argument also appears to be invalid. Is the intention to write the results of gpresult to a file?
Interesting... do ANY of the parameters listed in
http://technet.microsoft.com/en-us/library/cc733160.aspx
work for you?
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It turns out that the auditors really wanted to know the setting of "passwords are stored useing reversible encryption" in policy. Thanks to all for their efforts in addressing my question.