This was covered already. See http://www.sqlservercentral.com/Forums/Topic353013-146-1.aspx

The source of the problem appears to be the patch release this week. I uninstalled SQL Server on my desktop and re-installed. The problem went away.

Using the encrypted call is not necessary. By default SQL 2000 will encrypt the call when you use it to schedule. The encrypted call on the new server...