RMS errors with XP IE7 and Office 2007

Our RMS brother from Germany, Uwe, had the following RMS encounter. He wanted to share it on the blog.

Recently had an interesting issue with a customer where Windows XP SP3 clients with Office 2007 SP2 were not able to create or consume RMS protected content.

Some clients may receive the following error.
Microsoft Office has detected a problem with your Information Rights Management configuration. Contact your administrator for more information.

Looking into the DRM folder one could only see the Machine cert which is created locally.

After checking the RMS Debug traces from the server, we could see that the server actually creates the GIC and CLC, the client just does not receive them.

In the client side RMS Debug Trace we could see:

[msdrm]:CHttpBase::DispatchRequest returned hr:0,ErrorCode=200 when hitting Url=https://adrms.contoso.com:443/_wmcs/certification/Certification.asmx with Post size=13949   
[msdrm]:FAILED hr: 8007007a   
[msdrm]: FAILED : 8007007a    
[msdrm]:+DRMCloseSession   
[msdrm]:-DRMCloseSession HR=0

0x8007007a maps to ERROR_INSUFFICIENT_BUFFER The data area passed to a system call is too small.

This is an issue with Internet Explorer 7. Applying all available updates in IE7 will fix this issue. At a minimum installing KB 935777 will resolve the issue. Internet Explorer 8 does not have the issue.