SQL: CONNECT TO

When I perform an imbedded SQL CONNECT TO... I am getting:
CPF9190-Authorization failure on DDM TCP/IP connection attempt.
reason code 17
  17 -- The security mechanism requested by the client is not supported or 
 
    allowed at the server.  
See recovery information below.  
  22 -- Security processing at the client failed.  
Recovery  . . . :   Correct the problem indicated by the reason code if  
  possible, and attempt to connect again.  A common cause for reason code 
17 
  is that the server requires a password but the client sends only a user 
ID, 
  or the server requires an encrypted password and the client did not send 
an 
  encrypted password.  The iSeries DDM server can be configured to not 
require
  a password or an encrypted password by using the CHGDDMTCPA CL command.  
 

Right now most of our iSeries has 
CHGDDMTCPA AUTOSTART(*YES) PWDRQD(*YES)
One has
CHGDDMTCPA AUTOSTART(*YES) PWDRQD(*NO)
and I can connect to that.  Now, I am under the impression that running 
with *NO is not a normally recommended procedure.  But we'll fix the 
'working' machine later, (low risk).
However, if I change from
CHGDDMTCPA AUTOSTART(*YES) PWDRQD(*YES)
to
CHGDDMTCPA AUTOSTART(*YES) PWDRQD(*ENCRYPTED)

What other steps, if any, are involved?

Rob Berendt
-- 
Group Dekko Services, LLC
Dept 01.073
PO Box 2000
Dock 108
6928N 400E
Kendallville, IN 46755
http://www.dekko.com