I have an issue when decrypting any file.

I'm running Solaris 9 on the server with the 1.4.7 version and Solaris 10 on the
server with 1.0.0 version.

I create a key pair on one box that has version 1.0.0 on it. I used the
following command:
gpg --cipher-algo CAST5 --digest-algo SHA1 --s2k-cipher-algo CAST5
--s2k-digest-algo SHA1 --s2k-mode 3 --gen-key

Then selected for the answers:
1
1024
0
y
(the rest doesn't really matter)

Then I provided the public key (armor version) to another server running 1.4.7.
The 1.4.7 server accepts the key. I edit the key and change the trust to 5
(ultimate trust). I noticed I had to change the trust to ultimate to get the
warning during decryption to go away. Trust level 4 didn't get rid of the warning.

I encrypted a test.txt on the 1.4.7 version. Then utilized the sftp command in
unix to transfer the file to the other server. Command used to encrypt:
gpg -o test.gpg -r pulsedb@pearson.com -e test.txt

Now on server with 1.0.0 I run the decrypt command:
gpg -vvvvvvvvvv -o test.txt -r pulsedb@pearson.com -d test.gpg

gpg asked for the passphrase, I entered it.
Then it spit out this:

tlevett@pulsedb: gpg -vvvvvvvvvv -o test.txt -r pulsedb@pearson.com -d test.gpg
gpg: Warning: using insecure memory!
:pubkey enc packet: version 3, algo 16, keyid <key_id removed>

data: [1023 bits]
data: [1023 bits]

gpg: public key is C1FFD138
gpg: loaded digest 2

You need a passphrase to unlock the secret key for
user: "pulsedb (pulsedb keys) <pulsedb@pearson.com>"
1024-bit ELG-E key, ID <key_id removed>, created 2010-02-09 (main key ID <key_id
removed>)

gpg: key <key_id removed>: accepted as trusted key.
gpg: public key encrypted data: good DEK
:unknown packet: type 18, length 79
dump: 01 e9 b3 e4 9c bd 9f f7 d9 25 24 5b c4 f0 8b 00 2f 1d f8 a3 65 8a a6 42

24: 42 12 04 4a 82 4e a6 0c  96 9d 7f e8 62 28 f9 d9  22 30 41 db e7 ac a2 c9
48: bc d2 0c 90 07 44 48 2a  03 19 15 45 ce 55 04 ae  fa 67 fd aa 9b 03 29 78
72: e9 15 01 b7 a1 3e 6f

tlevett@pulsedb:

After that I do an ls and the output file is not present.
Any thoughts?
Note: I would upgrade to the newest version if that was an option.

Any help would be most beneficial.