Definately something weird going on here.

Stephen, could you mail me a copy of the crypted.exe which you have generated using the "^" character and fails. That may give me a clue as to what is going on.

You will need to rename it "crypted.foo" or something, as "exe" files will be dropped by our anti-virus software.

Obviously if you have sensitive information in the script use a test file to generate the crypted file.

If you don't mind I may send you an updated version of KiXcrypt to debug the problem once I've had a look at it.