CAM-CRP-1280 An error occurred while trying to decrypt using the system

Symptom
IBM Cognos Configuration fails to save and start after upgrading from an earlier version of IBM Cognos 8 in the same directory (inplace upgrade). When you copy the decrypted cogstartup.xml file from the earlier install. When starting IBM Cognos Configuration, you receive the following message:

CAM-CRP-1280 An error occurred while trying to decrypt using the system protection key. Reason: javax.crypto.BadPaddingException: Given final block not properly padded

The Java Runtime Environment (JRE) has changed to ‘C:/Program Files/cognos/c8/bin/jre/1.5.0’. The current cryptographic information is not compatible with the new JRE.

Regenerate option has no effect too:
CAM-CRP-1280 An error occurred while trying to decrypt using the system protection key. Reason: javax.crypto.BadPaddingException: Given final block not properly padded

Cause
Previous cryptographic information has not been deleted.

Solution
Delete the caSerial and cogconfig.prefs files in the configuration directory. Also delete the three directories: csk, encryptkeypair, and signkeypair. Start IBM Cognos Configuration again.