Encrypting File System (EFS) and temp files

[Cluent]

According to Miscrosoft (How to use Encrypting File System (EFS) with Internet Information Services) the following is/was a best practice:

"Encrypt the Temp folder (%TEMP%) to ensure that the temporary files that are created by various applications are encrypted"

Two questions:

(1) Is this still the case for Windows 7?

(2) If you move the encryption certificate and key off the computer for added security, won't encrypting the Temp folder cause system errors?

 

[Cluent]

As a follow-up, with the Temp folder encrypted I could not install some software today. I had to decrypt the folder to proceed with the installation. Very curious.