File encryption and remote sync method, what are the limitations?

When using the remote synchronize method, files are stored on the cloud server only with no local version of the file. The local file's state is maintained via a "tracker" file. However Cloud Xtender employs a clever caching and streaming engine that means file fragments can be accessed remotely and then cached locally. However if a file is encrypted in addition to using the remote synchronize method, this caching is no longer possible due to the encryption employed by the file. As a result, Windows (and other third-party application) will receive an access denied error. If you do wish to access / modify encrypted files in real time, it is recommend that you either 1) use the mirror synchronize method, or 2) cache the file locally.