.NET Framework Error: 6015 - EFS is disabled

If you are installing the .NET Framework 3.5 Beta2 on Vista and you get an error message like:

Installer encountered an error: 0x8007177f. This machine is disabled for file encryption"

Then what has happened is that your Domain administrator has disabled per policy the ability to have file encryption.

The following site explains how to correct this issue.

https://support.microsoft.com/kb/933595