dynamik wrote: No. It will automatically be decrypted.
Technet wrote: Local file operations and encrypted files Encrypted files or folders retain their encryption after being either copied or moved, either by using My Computer or by using command-line tools, to local volumes, provided that the target volume uses the version of NTFS used in Windows 2000 or later. Otherwise, encrypted files are stored as plaintext and encrypted folders lose the encryption attribute.
dynamik wrote: The same would hold true if another user copied your EFS files to a FAT volume. The data will remain encrypted, but you will lose EFS functionality once you move the files off of NTFS.
dynamik wrote: It sounds like you know exactly what I was saying, and I was just wrong I went back and quickly added that to give another example, and apparently I didn't put as much thought into it as I should have. Nice catch.