version not compatible

Hi, when trying to open a .gpg file (associated with windows privacy tray), I get the message ‘FATAL ERROR, Sorry your gnupg version is not compatible. You need at least gpg 1.1.9x or better.’.

From the system tray->about->about GPG, I get version 1.4.7.
c:\program files\GNU\GnuPG\gpg.exe --version gives 1.4.7 as well (as listed in Preferences->GPG)

What is wrong here? This is from a new install of gpg4win full package, winXP pro