I am learning how to encrypt the ConnectionString for our C# (3.5) Application. I read the .Net Framwork Developer Guide (http://msdn.microsoft.com/en-us/library/89211k9b(VS
The config is encrypted using the Machine Key. This means that only the computer with that key can decrypt it. The easiest thing to do is to deploy it with the config unencrypted and then encrypt it when the software runs, or use a seperate process to encrypt the config. You can distribute the original machinekey for use on other machines by using code4life's answer above
Rather than transcribe the step by step of how to use an RSA Encryption Key, please see this MSDN guide - http://msdn.microsoft.com/en-us/library/dtkwfdky.aspx