Hi Guys,
I really appreciate if anybody could solve this issue. 


Here is what happend
----------------------
I initially installed EXCEL 2002 on XP SP1. I ENCRYPTED a folder which
has few EXCEL documents which are password protected. There is not
issue with password protection. I encrypted folder in this way (THIS
folder was on C drive)
-- Chose folder - Right click - Chose PROPERTIES - Chose ADVANCED -
chose ENCRYPT CONTENTS TO SECURE DATA option.
Then I took BACK-UP to Maxtor external hard drive. 

Now here is the PROBLEM
----------------------
I formatted my system and installed XP SP2. I could able to RESTORE MY
BACK-UP from external drive  which consists of the above ENCRYPTED
EXCEL files.

When I tried to open EXCEL file it says "EXEL CAN NOT ACCESS
MYFILE.XLS. THE DOCUMENT MAY BE READ-ONLY OR ENCRYPTED"
----------------------------------------
Here are things I tried and observation

1) Password protection is not an issue b'coz in the first place it
could not able to open file
2) READ-ONLY is not an isuse as it is not
3) Tried same username as previous system has and also to the same
drive and Same computer name

Hello Gnetquest,

Did you happen to back up the "Private Key" used to encrypt the files
prior to reformatting your system? If so, you can use the key to
decrypt the files. If not, decryption may be difficult or impossible.

See
  http://support.microsoft.com/kb/241201/EN-US/
and
  http://support.microsoft.com/kb/223316/EN-US/
and
  http://support.microsoft.com/kb/308993/EN-US/
for an explanation of some of the issues involved in removing
encryption on folders / files. You may have the necessary files on the
backup, but I can't be sure (nor can I find instructions on how to do
this for your situation).

As an alternative, it may be possible to:
 - restore your original system from the backup,
 - remove the encryption (see the references above),
 - create a new backup
 - format / install XP SP2
 - restore the files

Good luck.
  --Maniac

Hi maniac-ga,

Thanks for your feedback on this issue. You are right, I'm in
difficult position as I haven't backedup the private key. I reviewed
this stuff earlier before posting this issue. I'll try the other ways
as you pointed out. I'll let you know If I could able to resolve it
Thanks