Let's check the key container in machine.config(usually in C:\WINDOWS\Microsoft.NET\Framework\v2.0.50727\CONFIG), locate such section:
<configProtectedData defaultProvider="RsaProtectedConfigurationProvider">
<providers>
<add name="RsaProtectedConfigurationProvider" type="System.Configuration.RsaProtectedConfigurationProvider,System.Configuration, Version=2.0.0.0, Culture=neutral, PublicKeyToken=b03f5f7f11d50a3a" description="Uses RsaCryptoServiceProvider to encrypt and decrypt" keyContainerName="NetFrameworkConfigurationKey" cspProviderName="" useMachineContainer="true" useOAEP="false" />
<add name="DataProtectionConfigurationProvider" type="System.Configuration.DpapiProtectedConfigurationProvider,System.Configuration, Version=2.0.0.0, Culture=neutral, PublicKeyToken=b03f5f7f11d50a3a" description="Uses CryptProtectData and CryptUnProtectData Windows APIs to encrypt and decrypt" useMachineProtection="true" keyEntropy="" />
</providers>
</configProtectedData>
Do you have the line in bold in the machine.config?
The future is now...
Sincerely,
LeiJun Jie
Microsoft Online Community Support