What sort of system are you running on? I've run it on both Win98 and WinXP and haven't run into the problem you're encountering w/ the zero-length file.

With regard to the button captions, I designed CryptoPad on a machine running at 1280x1024 resolution, but I believe everything should look ok at 1024x768 as well. Anything less than that and, yes, I'm sure the buttons do get cropped. I've been toying with the idea of having the encryption options as part of a drop-down menu to solve this problem.
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Kurt