I had the same problem after installing 7.03 on my XP machine. No need to reinstall XP. Go to System Restore and click on "Restore my computer to an earlier time". Choose a time and date that is earlier than the date when you installed PGP 7.03, and then click Next.

Checked with Microsoft and it isn't compatible at all with WinXP. If you installed the IPSEC functionality you have to back out to the previous good configuration, uninstall won't cut it.

I appreciate the posts that you all have provided here... I was having the same networking snafu that a few of you described: Here's how I've got PGP and WinXP to work:

I upgraded from Win98 -> WinXP. The first time I did, I already had PGP 7.0.3 installed on my box. When XP booted, I had the "cannot establish link to pgpsdk service" message... couldn't for the life of me get rid of it. Tried to remove/re-install PGP which proceeded to cut off my network connection. I had to back all the way back to Win98 to restore my network connection.

Here's how I got it right: