Hopefully this will help somebody else at some point.
I came across this yesterday while doing some pre-upgrade work on a Win 2003 system using WSLX terminals on Res 4.11. Some of what I'm doing is standardizing IPs to use 192.168.100.xxx and changing workstation names to make more sense; "Bar Left" makes much more sense than "PCWS02".
Anyway, after changing the server's 2nd IP, updating Network Nodes and rebooting, I wiped all the workstation CFs and ran CAL. Everything worked fine and the OPS loader finished, but then I got the dreaded "waiting for MDSHosts file" popup, and then the even more dreaded, ugly "Encryption Initialization Failed" error.
30 minutes and a few hundred new gray hairs later, I realized that there was a typo in the server IP in network nodes, (20 instead of 250, and yeah I should have looked sooner). I fixed it, reloaded the database, rebooted the workstations, and everything came up except the bar workstation. Turns out the Micros will throw an Encryption error at you if the server IP doesn't match it's Network Node entry instead of an "I can't find the server" type error.
After wiping the flash and running CAL 2 more times on the bar station I noticed that the power light, which is pushed into the unit and barely visible, is green instead of blue. Seems last time Micros serviced it they replaced the LX with a WS4. I found that the CAL folder for each workstation type had it's own MDSHost.xml file, which the LX terminals seemed to ignore but the WS4's use. I deleted them, rebooted the workstation and it finally booted into OPS.
So long story short, check your IPs, host files and CAL directories if you get this ugly error message.
I came across this yesterday while doing some pre-upgrade work on a Win 2003 system using WSLX terminals on Res 4.11. Some of what I'm doing is standardizing IPs to use 192.168.100.xxx and changing workstation names to make more sense; "Bar Left" makes much more sense than "PCWS02".
Anyway, after changing the server's 2nd IP, updating Network Nodes and rebooting, I wiped all the workstation CFs and ran CAL. Everything worked fine and the OPS loader finished, but then I got the dreaded "waiting for MDSHosts file" popup, and then the even more dreaded, ugly "Encryption Initialization Failed" error.
30 minutes and a few hundred new gray hairs later, I realized that there was a typo in the server IP in network nodes, (20 instead of 250, and yeah I should have looked sooner). I fixed it, reloaded the database, rebooted the workstations, and everything came up except the bar workstation. Turns out the Micros will throw an Encryption error at you if the server IP doesn't match it's Network Node entry instead of an "I can't find the server" type error.
After wiping the flash and running CAL 2 more times on the bar station I noticed that the power light, which is pushed into the unit and barely visible, is green instead of blue. Seems last time Micros serviced it they replaced the LX with a WS4. I found that the CAL folder for each workstation type had it's own MDSHost.xml file, which the LX terminals seemed to ignore but the WS4's use. I deleted them, rebooted the workstation and it finally booted into OPS.
So long story short, check your IPs, host files and CAL directories if you get this ugly error message.