Problems with RC5 (looks simple enough)

Hello,
	I do not understand why I am getting this problem. I encrypt the
contents of the file with $key, and decrypt it with $key as well. When I
print out the results, I get garbage on the screen. 

#!/usr/bin/perl

        use IO::Socket;
        use Crypt::RC5;
	#http://search.cpan.org/doc/SIFUKURT/Crypt-RC5-1.01/RC5.pm

        $key = 'e726c4973ddd9c671cc07f8eef0f08b2';
        $rc5 = new Crypt::RC5($key, '12' );

        open(FILE,"/etc/passwd");
        while(<FILE>){
                $file .= $_;
        }
        close(FILE);

 	$stuffing = length($file)%8;

        for($i = 0;$i<$stuffing;$i++){
                $file .='#';
        }
	# Since RC5 takes word input of size 8, i stuff the data with 
        # pound signs to make sure it is properly sized

        $cipher = $rc5->encrypt($file);

        $plain = $rc5->decrypt($cipher);

        $plain =~ s/\#+$//;

        print $plain;