Ops, right. I missed it in the email :( It looks like the template
does not specify "what" to encrypt: node or node content. Check
that you have Type attribute like this in the template:
<EncryptedData
xmlns="http://www.w3.org/2001/04/xmlenc#"
Type="http://www.w3.org/2001/04/xmlenc#Content">
...
</>
Aleksey