Are there any restrictions on EFS certificates in Visual Studio .NET

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Are there any restrictions on EFS certificates
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There are two restrictions on EFS certificates:
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You cannot store the EFS certificates on a smart card. The EFS decryption and recovery processes are hard-coded to work only with software-based cryptographic service providers (CSPs) nd will not access a private key that uses a smart card CSP. In addition, today s smart card CSPs do not support Rivest Shamir Adleman (RSA) encryption of symmetric key material generated outside of the CSP.
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Part III: Deploying Application-Specific Solutions
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You cannot protect the EFS certificate with strong private key protection. The EFS decryption and recovery processes are performed by the Local Security Authority (LSA) in Kernel mode. To input the password protecting the user certificate, the LSA must be exposed to the desktop, which is a security risk. Exposure of the LSA to the desktop is not allowed to prevent this security risk.
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You can enable key recovery for EFS encryption certificates. This allows the recovery of a lost EFS encryption private key without the intervention of an EFS Recovery Agent. A certificate manager extracts the encrypted private key from the CA database and a key recovery agent decrypts the private key and distributes the resulting PKCS #12 file to the original user, allowing the original user to import the private key back into the user profile.
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Note Enabling key recovery at an enterprise CA running on Windows Server 2003, Enterprise Edition, is covered in 14, Archiving Encryption Keys.
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Deploying EFS
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The deployment scenario that follows assumes that you implement key recovery and data recovery for an organization s EFS implementation. To deploy this solution, you must define the necessary certificate templates and plan how to deploy certificates to users.
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Enabling and Disabling EFS
An organization might not want to allow EFS encryption on all Windows 2000 or Windows XP network computers, preferring instead to enable EFS encryption for specific OUs or domains.
Enabling EFS
To enable EFS encryption on a Windows 2000 computer, you must ensure that an EFS recovery policy is implemented at the domain or OU containing the computer account that designates one or more EFS Recovery Agent certificates. Windows XP can implement EFS encryption without designating an EFS Recovery Agent.
16:
Encrypting File System
Note In a Windows 2000 domain, EFS is enabled by default. The EFS Recovery Agent certificate s private key is stored in the first Administrator s profile on the first domain controller installed in the domain.
Disabling EFS
To disable EFS encryption on a Windows 2000 computer, you must implement an empty EFS recovery policy, where an EFS recovery policy is designated with no EFS Recovery Agent certificates.
Note Enabling an empty EFS recovery policy is different than implementing no EFS recovery policy. If no EFS recovery policy is implemented, the client computer implements the EFS encryption settings defined in the local security policy.
To disable EFS encryption on a Windows XP computer, you must configure Group Policy to block EFS encryption. This is accomplished using the following procedure: 1. Link a new GPO to the OU where the Windows XP computer accounts exist. 2. Open the GPO in the Group Policy Editor. 3. In the console tree, navigate to Computer Configuration\Windows Settings \Security Settings\Public Key Policies\Encrypting File System. 4. In the console tree, right-click Encrypting File System and click Properties. 5. In the Encrypting File System Properties dialog box, disable the Allow users to encrypt files using Encrypting File System (EFS) check box, and click OK.
Certificate Templates for EFS Encryption
Three certificate template are required when deploying an EFS encryption solution with both data recovery and key recovery:
An EFS Recovery Agent certificate template A Key Recovery Agent certificate template An EFS user certificate template
Part III: Deploying Application-Specific Solutions
The sections that follow describe the specific configuration recommendations for each certificate template.
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