Public bug reported:

I will discribe the steps I am taking and hopefully someone will know
what to do.

I created a folder /home/marion/Vault.
I right click on the folder and select Encrypt...
I get a dialog "No encryption keys were found... The program Passwords and 
Encryption Keys will now be started... either create a key or import one." I 
click ok.
The Passwords and Encryption Keys window opens.
I click the New button at the bottom.
The Create a New Key window opens.
I click PGP Ky and click Continue.
The New PGP Key window opens.
I enter my full name, email address, and a comment. Then I click Create.
The Passphrase for New PGP Key window opens.
I enter the passphrase twice, and click Ok.
The Generation key window opens, with primegen in and a progressbar moving left 
and right.
After approximately 4 minutes I get the following error.
<big><b>Couldn't generate PGP key</b></big>
General error
and a close button.

** Affects: ubuntu
     Importance: Undecided
         Status: New

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[Intrepid] Unable to encrypt a folder
https://bugs.launchpad.net/bugs/297206
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