An interaction between PGP 7.0.3 with the "wipe deleted files" option, when used on Windows Encrypted File System (EFS), creates a cleartext temporary files that cannot be wiped or deleted due to strong permissions, which could allow certain local users or attackers with physical access to obtain cleartext information.
http://download.nai.com/products/licensed/pgp/desktop_security/windows/version_7.1/hotfix/ReadMe.txt