Problems with gpg-agent

Ok I use to have no problems with using openpgp and kmail, I had my system 
setup as describe on the kmail howto.

However recently after upgrading to kde3.2, gpg-agent no longer works.  I get 
a very quick flash of what I believe is the password entry window that use to 
come up. 

Any help would be great.

Here is the output of my test with debug on:

echo "test" | gpg -ase -r 20492C6C |gpg

You need a passphrase to unlock the secret key for
user: "Jeffrey Gordon <[email protected]>"
1024-bit DSA key, ID 20492C6C, created 2003-07-22

gpg-agent[0x807cf60] -> OK Your orders please
gpg-agent[0x807cf60] <- OPTION display=:0.0
gpg-agent[0x807cf60] -> OK
gpg-agent[0x807cf60] <- OPTION ttyname=/dev/tty
gpg-agent[0x807cf60] -> OK
gpg-agent[0x807cf60] <- OPTION ttytype=xterm
gpg-agent[0x807cf60] -> OK
gpg-agent[0x807cf60] <- OPTION lc-ctype=C
gpg-agent[0x807cf60] -> OK
gpg-agent[0x807cf60] <- OPTION lc-messages=C
gpg-agent[0x807cf60] -> OK
gpg-agent[0x807cf60] <- GET_PASSPHRASE 
0E97B1F83A29B4A235EBD7D61F47D0B720492C6C X X 
You+need+a+passphrase+to+unlock+the+secret+key+for+user:
%0A"Jeffrey+Gordon+<[email protected]>"%0A1024-bit+DSA+key,+ID+20492C6C,
+created+2003-07-22%0A
gpg-agent[8584]: DBG: agent_get_cache 
`0E97B1F83A29B4A235EBD7D61F47D0B720492C6C'...
gpg-agent[8584]: DBG: ... miss
gpg-agent[8584]: DBG: connection to PIN entry established
gpg-agent[8584]: command get_passphrase failed: ec=-1
gpg-agent[0x807cf60] -> ERR 116 no data available
gpg: problem with the agent - disabling agent use
Enter passphrase: gpg-agent[0x807cf60] <- [EOF]
-- 
Jeffrey D. C. Gordon
[email protected]