well.
try this:
kixcrypt -d -f c:\windows\kix32.exe -e "%KIXCRYPTDIR%\kix32.exe %KIXCRYPTFILE%" myscript.kix

as it seems, you had kixcryptpath\kixcryptpath\file in there.
hmm... richard, is %kixcryptfile% fully qualified (full-path) reference?
(can't remember myself)
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