The latest version of this gem released on Rubygems (1.0.3) is still incompatible with Hiera 1.0.0 (still calls Backend.empty_answer, doesn't include cc27a12455309b639fec990972dd186b3205c1c2). Now that Hiera is being more tightly integrated with Puppet 3.0, you can no longer choose to use an older version of Hiera.
All together, this means if you're using hiera-gpg, you can't upgrade to Telly.
The latest version of this gem released on Rubygems (1.0.3) is still incompatible with Hiera 1.0.0 (still calls Backend.empty_answer, doesn't include cc27a12455309b639fec990972dd186b3205c1c2). Now that Hiera is being more tightly integrated with Puppet 3.0, you can no longer choose to use an older version of Hiera.
All together, this means if you're using hiera-gpg, you can't upgrade to Telly.
Please package a new version of the gem.