'Latest Start Date' & 'Effective Start Date' are displayed as different

Issue Background:
I have told following steps to follow while creating an employee to my end users.
Case: An employee record has to be entered on 02-05-2012 who joined on 01-01-2010.
Steps to be followed:
- Enter the basic details of the employee (on 'People' form) / Left the 'Effective Start Date' and 'Latest Start Date' as default date i.e. 02-05-2012
- Ctrl + S
- Click on 'Assignment' button
- Enter Basic Assignment information (The effective date on Assignment form is being displayed as '02-05-2012')
- Ctrl + S / Close the assignment form
- Change the 'Latest Start Date' = 01-01-2010
- Ctrl + S / Some warnings appear and then the record is saved.
My end user created at least 100 employees following the same procedure.
Issue:
With at least 5 employees there is a case that when I query those employees I am able to see a different Effective Start Date (i.e. 01-01-2010) and Latest Start Date (i.e. 02-05-2012). And when I open the assignment form the effective date displayed there is '02-05-2012' as well. ....Means some how in these records the assignment is created for these employees starting from 02-05-2012..rather than 01-01-2010.
When I try to change the Latest Start Date to 01-01-2010 then system shows me this error --> '_APP-PAY-06841: Person changes exist between the old date and new date._'
I don't know EITHER how this case was produced while entering the date OR what is the solution of this problem.
Can any body help in this regard?

Thanks for your response Avinash.
Btw, I have viewed all these notes 368289.1, 603233.1, 399056.1, 329692.1, 1146414.1 already, but these don't seem to solve my problem because in each of these are under assumption that the initial Joining Date of the employee (i.e. Effective Start Date and Latest Start Date) is entered correctly without an issue, and these notes talk about dealing with 'Updating or Correcting' the data.
But In my case the pre-conditions are different, although those are making the system to respond in the same way (i.e. showing same error) some how.
As far as deleting the employees is concerned, yes that could be one option, but I am not really sure about adapting this solution as the dates I used in my case were just example dates, and in actual these employees are created almost 1 month back and they are already used in Projects module, CRM module and others.

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1) Why are you not closing the streams when writing the keys to the file?
2) Each block of RSA encrypted data has size equal to the key modulus (in bytes). This means that for a key size of 1024 bits you need to read 128 bytes and not 64 bytes at a time when decrypting ( this is probably the cause of your 'Data must start with zero exception'). Since the input block size depends on the key modulus you cannot hard code this. Note - PKCS1 padding has at least 11 bytes of padding so on encrypting one can process a maximum of the key modulus in bytes less 11. Currently you have hard coded the encryption block at 64 bytes which is OK for your 1024 bits keys but will fail for keys of modulus less than about 936 bits.
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