Lion OSX File Vault and filesharing with unencrypted users/computers

How does File Vault 2 work in the following Use-Case? 
User A, has full disk encryption through File Vault enabled on a MacBook Air. 
User A has an Microsoft Excel file that has been stored in his/her Documents Folder on their encrypted drive. 
User A wants to share this file with User B so that User B can finish entering data and adding some calculations. 
User B is a Windows 7 PC with no disk encryption. 
User A drops this file on a WIndows file server that both User A and User B has access to. 
This file server is not an encrypted system. 
Will the act of User A dropping the file on the file server automatically unencrypt the file so the User B can open the Excel file and work with it?

The files don't get passed as an encrypted object. They get passed as files. The encryption/decryption works at a level that is transparent to just about everything, includingthe file system.
So, no, the file is not encrypted when you drop it onto a file server.

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