Files are not decrypted automatically when you try to access them.
This issue can occur if USERINIT.EXE is listed in TrustedPrograms.
SafeGuard LAN Crypt 220.127.116.11
IMPORTANT: We have seen this issue with SafeGuard LAN Crypt Client version 18.104.22.168. It is possible that the same issue will appear with another version of SafeGuard LAN Crypt Client on a different OS.
Windows Vista SP1, Windows XP SP3
What to do
Check if USERINIT.EXE is defined in TrustedPrograms and if TrustedProgramMethod is configured with 2 (incl. childprocesses).
If this is the case, either remove USERINIT.EXE or change TrustedProgramMethod to 1.