EFS and Firefox Download Manager

I had a user ask me today about an unusual issue with EFS on Windows XPsp2 when Mozilla browsers are used.
With EFS, normally you enable it for a folder, and you expect that any file that you place in that folder will be encrypted.
1. create a folder called c:\encrypt and set the EFS attribute on that folder
2. Download a file using Internet Explorer and save it to c:\encrypt. The file is created in an encrypted manner.
3. Download a file using Firefox or Netscape. (You must select Tools, Options, Download and specify c:\encrypt as the location to save downloaded files). The file is NOT encrypted.
4. Down a file using Firefox or Netscape using Right click “save target as” and it is encrypted.
Turning on auditing, I see that when the file is saved windows explorer is involved 9 events are actually recorded. When I save through the download manager only two events are recorded.
My next step was to use Sysinternals Process Monitor to look closer at what happens. That killed my theory that the download manager was somehow not running as me. I’m kind of at a dead end now. I’ve googled, but didn’t find anything. I’ll update this post if I find an answer.
updated: My Microsoft TAM suggests that the Firefox Download Manager may download the file to a temporary location and then move it to the final location. A move on the same parition would preserve the old attributes and the permissions.
Internet Explorer, on the other hand, performs a copy so it inherits those things.