There was a batch of radios that were released that used a previous version of the processor. This processor doesn't process the encryption properly. This was replaced with a different rev that does work.
If you issue an ATP% from the console, you will receive either an 8103 or 8204. If you get the 8103, this means that you have the previous processor and this must be RMA'd.
The support engineers are aware of the issue.
At the console do the following:
1.Type +++ and wait for an OK
2.Type ATP% and hit enter. You will receive one of the two responses.
3.Type ATCN and hit enter. This will exit command mode.
If you find out that you need the RMA, just give the support engineers a call (866-765-9885) and they will get the RMA ball rolling.