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"Error Creating Key Container" when signing onto a database

When signing onto a database, you may get the following error:

Password encryption failed with Error creating key container!

This is a problem that happens from time to time with AQT. AQT uses Windows encryption for encrypting and decrypting passwords when the Save Password feature is used. In some circumstances the encryption / decryption fails with an error such as this. Unfortunately Microsoft provides very little useful information about diagnosing these problems.

Some users have found that the problem can be resolved by deleting the contents of the following directories (for Windows XP):

On Windows Vista and Windows 7 these directories are:

If this does not work the best option is probably be to de-select the Save Password button on the signon window.