The solution is complex and not only involves changing the port addresses to 25 and 110. The main issue is the server addresses.
1. Gmail uses a different server everytime a user connects a POP mail account.
2. The incoming server and outgoing server are the same!
3. wild cards (*) do not work in the server address (e.g. *.gmail.com)
For the incoming server the settings in Windows Live Mail are: pop.gmail.com, port 110
For outgoing server the settings are the latest server address automatically detected by PGP when the email client is opened. For example the latest server address detected by PGP for my gmail account is qc-in-f108.1e100.net, the port is 25. What this means is that in order to send outgoing mail the user has to copy and paste this server address for the outgoing server in Windows Live Mail every time you open Windows Live mail. If you don't, you cannot send encrypted email. The wildcard setting *.1e100.net does not work.
Tom, thanks again for your assistance.
Attached are some screen shots.
clone4501