The data, encrypted on XPSP1 machine by MS Enhanced provider with RC2
agorithm using the 128 or 56-bit key derived from password can not be
decrypted on machines with previous versions of Windows (tested on Win2k,
WinMe, WinXP without SP1) and vice versa.
This fact can be easily tested using MS Platform SDK samples encrypt.exe and
decrypt.exe (Samples\WinBase\Security\Crypto\Encrypt). These samples should
be built with USE_BLOCK_CIPHER definition that turns on the RC2 algorithm
instead of RC4.
Just encrypt any text file with password on XPSP1 machine and then try to
decrypt with the same password on another machine with another OS. The
CryptDecrypt function will fail with NTE_BAD_DATA code.
This incompatibility can cause the loss of functionality of the existing
systems that use encrypted communications across the network.