I can confirm this issue with 'seahorse-nautilus' version
3.7.5-0ubuntu1.  When encrypting multiple files, it even creates the
archive, but doesn't actually save a .pgp file.  Decryption fails
without warning as well.  Note, however, that using 'gpg --encrypt file'
and 'gpg file' to encrypt and decrypt works as expected, even prompting
for my passphrase with the standard GTK keyring dialog.

'.xsession-errors' contains the following line immediately after I correctly 
type the passphrase for my PGP key:
(seahorse-tool:18139): GLib-WARNING **: GChildWatchSource: Exit status of a 
child process was requested but ECHILD was received by waitpid(). Most likely 
the process is ignoring SIGCHLD, or some other thread is invoking waitpid() 
with a nonpositive first argument; either behavior can break applications that 
use g_child_watch_add()/g_spawn_sync() either directly or indirectly.

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https://bugs.launchpad.net/bugs/1168685

Title:
  Encrypt option doesn't work in raring

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