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By default, DAOS encrypts NLO files using the server key. The root of the problem is a buffer that is too small to deal with a 2048-bit server key during the encryption process.
There is a hotfix and two workarounds for this.
1) The hotfix (preferred way to correct this) can be obtained through support.
2) You can disable this (and lose some security in the process) by setting the server's notes.ini var DAOS_ENCRYPT_NLO=0
3) If you use a server key of 1024 bits (or smaller), you won't run into the problem.
Feedback response number PMAO7NGRYK created by ~Dan Zeklulygon on 01/20/2009