>Here's an update for anyone that may be interested in this issue. I have identified problems with the encryption routines but have also (I think) found the culprit. {snip}

Thanks Greg for the info. That is entirely correct. A lot of people get bitten by it. u
Ufortunately I did not know some of these issues when I wrote my article on the CrypoAPI in CoDe Magazine last year, so I did not mention them.

You may want to add a document on this at the Fox Wiki also.