Hi, what happens is that it tries to copy the file using the normal Windows copy method. That fails because it doesn't have access to the file. So it falls back to using the backup copy method. However, that cannot be used to copy NTFS encrypted files, which is why you get the error "The file is NTFS encrypted ...". We've now changed this for the next release so it shows both the access denied error and the NTFS encrypted error.
However, there's no solution to your problem except to give access rights to the encrypted files so SyncBack can copy them.
However, there's no solution to your problem except to give access rights to the encrypted files so SyncBack can copy them.