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Here is what looks to be a good article on step-by-step how to implement exchange 2003 Email encryption.
basically, you need to have a cerificate authority on your domain, Obtain and distribute certificates for your users, configure the information stores to use the certificates and finally configure your outlook clients to use the certificates for teh S/MIME conversions.
I'm not positive, but it stands to reason that internet e-mails would not be encrypted-- since the recipient would not have access to your CA and providing the public/private keys would be problematic and a potential security hole.
Last Answered:
Mar 5 2008 0:45 AM GMT by Jlees 
5320 pts.