RMS, IRM and Sharepoint 2010 Ent Integration

I seem to have an issue with the implementation of RMS, IRM, and SP 2010.

First off, I would like to know whether this work with non-joined domain computers? Whenever I apply the IRM to the document within the Sharepoint library as a user with only view permissions, the document opens under the rights of the author, e.g. Administrator. Therefore, all the permissions are available for the "restricted" user. The following occurs when i try to access a file as a restricted user:

Open in edit/read > I choose read-only

Auth pop-up to SP server > I authenticate as restricted user

RMS popup . auth with upn as restricted user

Doc opens > view permissions > everything in permissions is listed as yes!

States permissions applied are that as of administrator@domain.local