The specific tests you did were fine, my code wasn't.  Sorry for the
bugs.

Here's the latest gnus-encrypt.el and a working netrc.el that will do
the right thing if there's an encryption model associated with a
file.  I tested them, let me know if you get good results too.

At the end of gnus-encrypt.el is the old netrc.el code that supported
OpenSSL.  I'll enable that as well later, for now GPG is the only
choice for external encryption.

Ted