Can't import public pgp blocks

[Creenome]

I cannot seem to figure this problem out.
I'm running Mint 13 mate x64, may I remind you this is a fresh install.
I've followed the instructions on the GNUPG site on creating key pairs and importing keys. When I was testing out Mint 14 Mate everything worked as it should have, which brings up my current problem.
Importing GPG key blocks doesn't work.

A copy of my konsole

keith@Boss ~ $ gpg --import key.txt
gpg: can't open `key.txt': No such file or directory
gpg: Total number processed: 0

key.txt does exist.
running

ls

gives back

keith@Boss ~ $ ls key.txt
ls: cannot access key.txt: No such file or directory

Help would be appreciated

[Perfect Storm]

Moved to Other OS/Distro Talk.

[Cheesemill]

Can you post the output of...

ls -lha ~