Many customers were facing issues with a bug in .NET compact framework where CF failed to call some HTTPS web servers when encrytpion is enabled. The core issue here was that SSL decryption breaks and NetCF resets connection if an empty encryption packet is sent. This is had been described in detail by Andrew Arnott here.

Since many customer were hitting this issue .NET CF team has decided to release a hot fix for this. The hostfix is available now for public consumption.To get the hotfix you need to contact Microsoft PSS. The KB no for this hot fix is 970549. Users will have to install the fix themselves or ISVs who require the fix for their applications can redistribute it with their applications.