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This has been discussed a while ago on the epub forum. inDesign obfuscates the fonts (there's no real encryption) in order to dissuade people from removing them from the epub. It inserts an encryption.xml to signal this fact. This is not the problem, since some font licences require obfuscation. The real problem is that the epub standard specifies a different obfuscation scheme to that used by Adobe (though frankly this is another area in which the standard is just a result of silly political manoeuvring, since they didn't want to adopt the system already developed by Adobe).
The solution is exactly as I stated: don't embed fonts from inDesign and you won't get the encryption file.
I somehow doubt that twedigteam has a licence to distribute Adobe Garamond anyway.
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