strace shows that gnupg.mo is not searched in /usr/share/locale, but only in current directory.
Hmm, looks like autoconf versions before 2.60 didn't define localedir, and gnupg expects it to be defined at build-time. Hopefully test updates (gnupg-1.4.7-5) which fix this will get pushed out today. If you can verify that it fixes this bug, I'd appreciate it. Thanks!
gnupg-1.4.7-5 has been pushed for fc6, which should resolve this issue. If these problems are still present in this version, then please make note of it in this bug report.
gnupg-1.4.7-5 fixed it, thanks.
based on comment 6, closing bug Ref: tested with gnupg-1.4.7-7 (rawhide) and it is working