GPG Shell works but GnuPG commands fail

[HORNBOSTEL, LIBBY A (ATTSI)]

I have been tasked with installing GnuPG and GPG Shell onto Windows XP
(then onto Windows Vista) to decrypt data files currently using PGP
Command-Line software.  
I have installed GnuPG for Windows (version Version 1.1.4 ) from the
http://gpg4win.org/ website.  It appears to load successfully, but GPA
throws a fatal error 
"Fatal Error in GPGME Library.  
(invoked from file /home/wk/src/gpg4win11/build/gpg4win-1.1.4/
src/playground/build/gpa-0.8.0/src/confdialog.c, line 1447) 
Unsupported protocol  
The application will be terminated"

So, I continued on and installed the GPG Shell product from
http://www.jumaros.de/rsoft/index.html.  I loaded some public and secret
keys that were created from the PGP Command-Line software successfully.
I can decrypt a file using the GPG Tools function.  But when I try to
use the PGP commands with options from a DOS prompt (or command prompt)
gpg --decrypt C\DATA\CD.txt  --output C:\DATA\CD.icf --passphrase
my_pass  
I get the following:

Usage: gpg [options] --decrypt  [filename]
If I evoke gpg first, I get:
gpg: Go ahead and type your message . . . 
Then enter:
gpg --decrypt C\DATA\CD.txt  --output C:\DATA\CD.icf --passphrase
my_pass  
The command prompt hangs.

I would think it is a problem with the GnuPG installation, but would the
GPG Shell work?  
Thanks in advance for any assistance you can provide.


Libby H