JSI Tip 2881. You receive an 'Access Denied' error when encrypting a folder?

When you encrypt a folder, you receive:

An error occurred applying attributes to the file:
FolderFilename - Access is denied.

The most likely cause of this error is that a file or sub-folder has the System attribute turned on.

To fix the problem, remove the system attribute, using the attrib command:

attrib [+r|-r] [+a|-a] [+s|-s] [+h|-h] ][path] filename] [/s[/d+r Sets the Read-only file attribute. -r Clears the Read-only file attribute. +a Sets the Archive file attribute. -a Clears the Archive file attribute. +s Sets the System file attribute. -s Clears the System file attribute. +h Sets the Hidden file attribute. -h Clears the Hidden file attribute. [[drive:][path] filename] Specifies the location and name of the directory, file, or set of files you want to process. You can use wildcard characters (? and *)  in the filename parameter to display or to change the attributes for a group of files./s Processes matching files in the current directory and all of its subdirectories. /d Processes directories.

NOTE: Never encrypt files or sub-folders in %SystemRoot%. Doing so will likely prevent your installation from restarting.