Can't create output file on Win2k?

[Peter C. Chapin]

I just downloaded the GPG v1.2.1 Windows binary and installed it on my
Win2k system. The key related commands seem to work. However, when I try
to encrypt a file it seems to be unable to create the output file. In
particular, if I do:

	C:\> gpg -c afile.txt

I'm asked for a passphrase twice and then the program hangs. CPU
utilization is zero percent and there is no disk activity. It appears to
hang forever. No output file is made. I eventually have to ^C to terminate
the process. I get the same effect when I do:

	C:\> gpg -e -r someone@someplace.com afile.txt

I did not observe this effect with GPG v1.0.6. Also the commands I'm using
appear to work fine on a Unix system so it must be related to my Windows
environment. I have searched through the archive but found no other
reference to this problem. Any ideas?

P.S. I am using the "-1" version of the distribution.

Peter