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Yes. A how-to is available at http://www.linuxsecurity.com/content/view/117565/171/
[Moved from http://www.linuxsecurity.com/feature_stories/pine-and-pgp-printer.html.]
Keep in mind that using GPG on any remote system carries inherent security risks, as the key is outside of your physical control. You should create a key specially for use on Cornerhost and not compromise your primary key.
No - it's because you aren't running as root, and Red Hat doesn't allow non-root users to lock memory pages. From http://www.gnupg.org/documentation/faqs.html#q6.1:
"6.1) Why do I get "gpg: Warning: using insecure memory!"
On many systems this program should be installed as setuid(root). This is necessary to lock memory pages. Locking memory pages prevents the operating system from writing them to disk and thereby keeping your secret keys really secret. If you get no warning message about insecure memory your operating system supports locking without being root. The program drops root privileges as soon as locked memory is allocated."