Thank you Adam,
Please answer the following:-
Is it mandatory to have an AD group for group membership & group key in the Universal Server?
Is it ok if we create a manual group with a group key in the universl server, where the members of the Univ-server group may be members of different groups in AD?
When I have mapped the FTP Server folder on the clients' machines as "Z:/", do I place check mark on "Force the encryption of files in the following folders" in the policy? Please check the pic attached.