To enable data encryption between the client and server components of the SalesLogix OLEDB Provider, you must edit the encryption type in the SlxLocalServers.xml file (found in the SalesLogix directory).
To change the encryption type:
- Open the SLXLocalServers.xml file.
- Change <Encryption type=”0″ /> to <Encryption type=”1″ /> in both locations in the file.
- Save the changes to the SLXLocalServers.xml file and restart the SLX Provider.
Enabling this option may have a negative impact on performance if a large amount of data is passed between all SalesLogix clients and the SalesLogix Server.
From SalesLogix Tips & Tricks guide (via Phil Meyer of SalesLogix)




Thanks for the heads up Ben. I have not had a need to put it to test as of yet.
Thanks,
-Ryan
This feature encrypts the sql server connection string used by connection manager. It is on by default. The ability to turn it off was for testing only and has been disabled.