gpg2

[Robert J. Hansen]

>     $ gpg2 -k
>     gpg: invalid item 'BZIP2' in preference string
>     gpg: invalid default preferences

Try "gpg2 --version" and look for a line like:


Compression: Uncompressed, ZIP, ZLIB, BZIP2


... I suspect you'll discover whoever compiled your GnuPG 2 neglected to
include support for the BZIP2 algorithm.