This same problem occurs when using `cp` on the command line in gnome-
terminal:

$ cp -r foo /home/me/Private/
cp: cannot create regular file `/home/me/Private/foo/putty private ssh 
key.ppk': Cannot allocate memory

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Error when copying directory tree with Nautilus to ~/Private using ecryptfs
https://bugs.launchpad.net/bugs/292429
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