Generate a gpg keypair. Check /dev/random to make sure you’re getting some output. If you dont get any standard output when you run this, ctrl-c and you will see 0+1 records in/out. This means there is a problem with your /dev/random device. Here’s the fix…
If you want to store a mix of encrypted and unencrypted files under the same area, choose plaintext passthrough, otherwise choose the default, no. I suggest an all or nothing approach, as it can get confusing as to which files are encrypted especially when they’re binary! (With ascii text files you can just cat a file and tell if it’s encrypted or not.)