No, an admin cannot read files that you have encrypted, at least with his own account. He'd need access to your account to read them
Not exactly...
If you leave the default EFS recovery policy in place, (where LOCAL\Administrator is the Recovery Agent) and
If the Administrator account is from the same install as your account, then "Yes", the Admin can read your encrypted files. Note: If the HD is loaded in a second machine, then part 2 is FALSE.
Alternatively, if it's a Local Admin, he can reset your password, login as you, and then he's "in like Flint".
Read the FAQ on this.
Based on my research for enterprise implementation:
1. Do export your EFS certificate (with private key) to a secure file area (CD, floppy, server), and document the password!
2. Change the EFS Recovery Policy to point to a non-local ID, or at least export and delete the recovery key from each individual workstation.
3. Do export your EFS certificate (with private key) to a secure file area (CD, floppy, server), and document the password!
4. Do NOT use EFS on temp directories, \Docs & Settings\USERID, \autoexec, and \winnt.
5. Did I mention? Do export your EFS certificate (with private key) to a secure file area (CD, floppy, server), and document the password!
6. EFS Recovery policy is only evaluated at workstation boot time. EFS Recovery policy is a machine attribute, not a user attribute.
There are many pitfalls in implementing EFS, and even more in the Microsoft PKI. Read the FAQ/docs. If you have AD-Domain questions, PM me.