I\'m having a problem with C# encrypting and decrypting using RSA. I have developed a web service that will be sent sensitive financial information and transactions. What I
First decide what you are trying to protect against. If you "encrypt" something using the private key, anyone can "decrypt" it with the public key, since the public key is - well - public.
If you actually want to sign it, you should (as Paul Alexander explains) sign a hash with the private key which can then be verified on the server.
To encrypt data using RSA you should first generate a random symmetric key (f.x. AES), encrypt the key using a public key and encrypt the data using the symmetric key. You can then transmit the encrypted key together with the encrypted data to the holder of the private key, who can then first decrypt the encrypted key with the private key and then decrypt the data with the symmetric key.
You might also consider using SSL, but remember to carefully consider the authentication. You will probably need client authentication and have to decide which certificates to trust (you should not just blindly accept any certificate issued by Verisign).