Public key issue out of GnuPG

[bkumfer]

I have implemented GnuPG on a server and created a public and private key.

In working with a partner, they were able to use the public key to encrypt a
file.  However, in working with the banks (the reason for the need), they
tell me the key is causing the issue below.

Wed Apr 1 12:30:11 EDT 2009 Encrypt - complete failure during an encode. :
encrypt (3063:key unable to encrypt) : command /usr/bin/pgpce3.sh -e
ack.252268.testfile.2482414 252268

Any help would be great?
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