Once you've got mail with PGP encryption into your Outlook Inbox highlight it and double click on it, to open it in a separate window
New window, containing encrypted message will popup. In this window select "PGP" from the toolbar and choose "Decrypt/Verify" option
PGP will prompt you for your private key password, enter it, click "OK"
That's it, the decrypted message will appear in the same window (In this example "Test Test Test" was encrypted