This was the main reason I picked up the yubikey, but I simply could not get GPG to recognize the yubikey to import my keys. I'm sure I simply missed some important step, but I couldn't figure it out with either GPG for windows or GPG in a linux VM.
I wish there more smart card devices available for use with PGP that were as widely purchasable as the yubikey.
The hardest part about getting the Yubikey to work, at least under Ubuntu, is dealing with the marriage to gnome-keyring. Uninstalling it and the associated autostart gpg-agent files (see http://www.bootc.net/archives/2013/06/09/my-perfect-gnupg-ss...) seems to do the trick. The documentation for doing this is _horrendous_
As long as the smartcard interface is enabled at all, it should 'just work'. You may need to do the initial pin reset, but otherwise Neo even comes with the pgp application preloaded.
I wish there more smart card devices available for use with PGP that were as widely purchasable as the yubikey.