I have several customers reporting this issue. We have tested disabling DEP (no difference) we also installed PGP using the msiexec options (disabling netshare, rdd, etc) with no luck either. I have filed a bug on this. Bug# 2520499.
The problem does not occur in safe mode because Sophos is disabled.
it is DEFINETELY the Sophos Endpoint Security and Control software's Auto-Update service conflicting with PGP that is causing the freezes. It appears that it's conflicting with PGP Desktop. We can confirm this by going into services.msc and disabling the Sophos Auto_update service. The system is immediately more responsive and no longer locks up. Uninstalling PGP Desktop while leaving Sophos AutoUpdate enabled, does not reproduce the problem.
I also installed PGP Desktop with only WDE enabled (no other options) and it still locks up (even without the disk encrypted). So it appears it is a problem with our WDE drivers and Sophos AutoUpdate. I have encouraged my customers to work with Sophos and open a technical suppport ticket there as well. To see if Sophos has any input to provide. Please note, it is NOT the same issue as the one already described in this KB (since disabling DEP and installing PGP without the MAPI components still causes the system to crash).
http://www.symantec.com/docs/TECH149145