GPG 2.0.1 No passphrase

[Tom Duerbusch]

I downloaded and compiled the GPG 2.0.1 release (SLES 9, 64 bit for
zSeries).

When I do the:

gpg2  --gen-key
1 DSA and Elgamal
2048 bits
7 days
y  yes this is correct
My Name
My at email.address 
My comment
o ok this is correct

But then, it doesn't ask me for a passphrase.  It seems to directly go
into calculating the key.  As in it asks me the question, but doesn't
wait for the answer:

Change (N)ame, (C)omment, (E)mail or (O)kay/(Q)uit? o
You need a Passphrase to protect your secret key.

gpg-agent[3973]: directory `/home/boat1/.gnupg/private-keys-v1.d'
created
gpg: DBG: connection to agent established
gpg-agent[3973]: can't connect server: `ERR 67109133 can't exec
`/usr/local/bin/pinentry': No such file or directory'
gpg-agent[3973]: can't connect to the PIN entry module: IPC connect
call failed
gpg-agent[3973]: command get_passphrase failed: No pinentry
gpg: problem with the agent: No pinentry
You don't want a passphrase - this is probably a *bad* idea!
I will do it anyway.  You can change your passphrase at any time,
using this program with the option "--edit-key".

We need to generate a lot of random bytes. It is a good idea to
perform
some other action (type on the keyboard, move the mouse, utilize the
disks) during the prime generation; this gives the random number
generator a better chance to gain enough entropy.

Is this an error in the code or am I just not seeing the option that
needs to be on the command line?  gpg (1.4) does wait for the
passphrase.

Thanks

Tom Duerbusch
THD Consulting