Event ID - 16

Event Id16
SourceOffline Files
Description Encryption of the Offline Files cache failed with error 5. Access is denied. The application event log
Event InformationAfter the network administrator applies the Encrypt the Offline Files cache (EncryptCache) Group Policy setting to a Microsoft Windows XP Professional-based computer, the Group Policy setting does not take effect on the client computer if the user logs on interactively by using the keyboard.
Additionally, this event is logged in the application event log.
CAUSE:
This problem may occur when the user who logs on does not have administrator permissions.
When the administrator applies the Group Policy, the EncryptCache registry value on the client computer is updated. Depending on the registry value, the Client Side Caching extension (Cscui.dll) in Windows Explorer tries to encrypt the Client Side Caching folder. However, without administrator permissions, the Client Side Caching folder encryption state cannot be changed.
RESOLUTION: A supported hotfix is now available from Microsoft
Reference LinksThe "Encrypt the Offline Files cache" Group Policy setting does not take effect when user logs on a Windows XP-based computer

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