I believe I am now experiencing this problem. I create a file xxx.gpg and save that file selecting a key on my keyring. I kill the buffer. I try to reopen the file and enter my passphrase and get the message "File exists, but cannot be read". I am always able to decrypt the file with gpg through the command prompt. I am sometimes able to open the file by visiting it in emacs. I have looked for a compatibility problem with something I am loading in my init.el. I emptied my init.el file and slowly built it back up. The first few times the file was opened and displayed on the first try. At some point, but not consistently, I started experiencing the problem again. The problem is not tied to any one package/file I load in my init.el. I am sometimes able to save and create a new file yyy.gpg with my full init.el. It may be related to how loading emacs effects my system's load. I am running Debian Squeeze on a HP Pavilion dv7 and my laptop is sometimes stressed as I am running RAID 1 with a single controller. The intermittent nature of the occurrence of this problem and knowing that decryption may heighten the load on my RAID 1/single controller laptop has me considering that my problem may be similar to what had been reported here.
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