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 while using the gnupg tool.  However, in working with the banks (the
reason for the need), they tell me the key is causing the issue below - they
will not necessarily use gnupg.

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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