Setting up linked Server in SQL 2008 R2

I'm trying to setup a linked server connection from SQL 2008 R2 to a SQL 2000 machine.  Here's my linked server settings:

EXEC master.dbo.sp_addlinkedserver
   @server = N'SOMESERVER.COM',
   @srvproduct=N'SQL Server'

EXEC master.dbo.sp_addlinkedsrvlogin
  @rmtsrvname=N'SOMESERVER.COM',
  @useself=N'False',
  @locallogin=N'pss_admin',
  @rmtuser=N'pedsuser', @rmtpassword='########'

When i run the stored procedure I need to run, i get this error:

OLE DB provider "SQLNCLI10" for linked server "SOMESERVER.COM" returned message "Client unable to establish connection".
Msg 20, Level 16, State 1, Line 0
Encryption not supported on SQL Server.

I'm able to connect to SOMESERVER.COM using MSSMS using account pedsuser and run the stored procedure fine, yet when I create the linked server and try to run it, i get the error message.  I'm not sure why Encryption would be a part of it, i have not disabled or enabled Encryption on the database that i'm aware of.  

Also of note, is that this linked server used to be on a SQL 2000 machine as well, and worked fine.  But when I've replicated it to Windows 2008/SQL 2008 R2, that's when I get the error message.

Any help or advice is much appreciated!

Thanks!