One of the benefits of SQL Server 2005 SP1 is that you can now run SQL Server in FIPS 140-2 compliant mode. This means that SQL Server will only use FIPS 140-2 certified encryption algorithms, which is a requirement for some government agencies.

Knowledge Base article 920995 describes how to turn on this mode. You can also find the KB article by simply searching for FIPS 140-2 on the Microsoft support site.

-David

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