If the problem was that Windows was not properly processing the correct passphase, there was the chance that entering it here would allow you to procede to decryption.
Did you also attempt this part of the KBA?
1. Boot with PGP Recovery Disk.
2. Do not continue with the normal sequence of entering a passphrase.
3. Go to the "advanced" panel.
4. This message "PGPWDE record inconsistency on 1 disk(s) was found and fixed" might be displayed. If this message is seen, the BSOD (blue screen failure) will be fixed.
5. Return back to the previous screen and continue boot from recovery CD. Rebooting without the Recovery Disk in the drive is also okay.