Problem with encryption between client and Enterprise, 8.1.7

Two computers: One with client and one with enterprise (both 8.1.7). Oracle Advanced Security installed during initial installation on both computers.

Both have:
NONE in authentication
MD5 in integrity
RC4_56 as the only chosen encryption type (requested)
SSL is not used

Every time I try to use test in local Net Service Name Configuration or to connect with sql plus I get the following error:

Connecting...ORA-12649: Unknown encryption or data integrity algorithm

Can anyone help me ? A read me file on Oracle's homepage talk about the TWO_TASK environment variable has to be set when installing the client. I haven't set this variable since the installation program doesn't mention this, is this a problem ? And if so how can I set it ?

I'm running window 2000 on both computers.

Thanks,
Lars Rosenberg.

Do sqlnet.ora enteries match .
Is oracle,sqlplus binaries linked with Advanced networking option.

Take care
GP

The sqlnet.ora files match up. They even have the same crypto seed.