In general, look for "WS-Security". That's the standard governing various WS security features likes authentication, signatures and encryption. It uses XML-Encryption underneath, so you don't need to deal with that directly.
The specifics of how to use WS-Security depend on the
SOAP toolkit you're using. For Axis 2, you need the
Rampart module. If you use the
Metro stack, WS-Security is built-in.