Transparent data encryption (TDE) in SQL Server 2008 enterprise edition is a great tool for protecting your data ‘at rest’ , but you need to be careful when you use it. TDE only really comes into play when you move the database to another location (hence
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Read the complete post at http://blogs.technet.com/andrew/archive/2008/08/26/career-limiting-move-sql-server-2008-transparent-data-encryption.aspx