Encryption - Application Vs DB

Hi All,

I am creating an application that will save financial data.

I am in the process of creating an architecture for this application.

I am stuck deciding wether to do encryption on the application side or SQL Server side.  I am planning to use AESManaged algorithm for this.

My requirement is such that the ecnryption key is unique for each user (based on user's password).

I am of the opinion that it should be on the application server side as it becomes easily scalable. Another attractive thing that I find is that if my frontend is Silverlight then I can pass on the actual encryption load onto the client system.

Please do give me your suggestions.
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