The current version of SD! does not support a PGPWDE destination. And yes, -- the next update will, and takes this into account. I do not have a release date for it, though, sorry!
Ignoring files always applies to selections from the source. It has no effect on the destination - you can't ignore or select destination files.
Note that you can use an encrypted disk image instead of PGPWDE if you'd like...
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--Dave Nanian
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