You need to tweak GPGMail’s settings for automatic authentication and decryption. The correct settings are outlined in an archived email on the GPGMail User mailing list.

Incidentally, you can find another fix for the “unread message count” bug (unrelated to GPGMail, but related to your Mailbox Behaviour settings) in this thread on the Apple Discussion Board.GPGMail, sen:te, Sente, unread messages, mail.app, apple mail, bugs Similar Posts:

• Security vulnerability in GPGMail
• Mail Unread Menu 1.1 now a bundle
• Mail Status Control 0.4.3
• Mail Unread Menu 2.0.3: Menubar notification
• Mail Unread Menu 2.0: Jump to mailboxes