This is Svante from AxCrypt! What version of AxCrypt are you running? The following applies to version 2.1.1388 or later. If you have an earlier version, please upgrade first.
Please do the following (which resets your user settings and your recent files list, but will not affect your encrypted files or anything else):
Stop AxCrypt (kill it from Task Manager if need be).
Use Windows Explorer and navigate to %localappdata%\axcrypt\ .
Create a folder there named for example ‘Broken’.
Move all *.txt files to the newly created folder ‘Broken’, drag and drop works fine.
Start AxCrypt again
You should now have to enter your e-mail again, but then go directly to the password dialog. There is no need to verify again. AxCrypt will resynchronize settings and your AxCrypt ID with the server (that’s why we have the Internet-connection requirement for the first installation on a new PC), and you should be ok again.
If this works, I’d appreciate if you could e-mail the files you moved to the Broken folder to me for analysis. There’s nothing really sensitive in them, but they may contain the encrypted file names of recent files, as well as your e-mail address. If this is problem, you can redact that manually before sending them, since they are just text files you can edit and view them with Notepad or any text editor.
Please send them to Svante dot Seleborg at axcrypt dot net .