Summary: There's a simple way to reverse the compressible encryption of a pst file.
How can I reverse the compressible encryption of a pst file?
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Within Outlook you should be able to simply select No Encryption for PST in its properties. If that doesn't work, then I'd simply create a new PST with No Encryption, and copy the contents of the first into the second.
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Article C2105 - July 8, 2004