Here's something from the newsgroups:

Hi Rob,


It seem something was failing when log shipping attempted to connect to
remote SQL Server. Below are some steps for you to try:


1) Add all related accounts to local admin group ( for example, SQL Server
startup account, your logon account, etc)
2) Did you use sa to register SQL server in SQL Server Enterprise Manager?
if so please use "windows authentication" and try again.
Steps are:
Lanuch SQL server Enterprise Manager->right click your SQL Server
name->select "Edit SQL Server registration Properties", then select "Use
Window Authentication".


Hope this helps.


Regards,
Simon Su (MS)



>I am trying to set up log shipping on a new set of servers, and I keep getting the following error when I click the 'Finish' button in the Maintenance Plan window:
>
> Error 50007: xp_repl_encrypt: Error executing srv_paramsetoutput
>
>I have done a search on MS.com for this error, and I only get results if I limit my search to "Error 50007". The errors listed with that do not seem to apply to what I have.
>
>Any help is very appriciated.