I believe that this issue was fixed in the Jaunty installer.

If you can still reproduce this issue, please, by all means, re-open
this bug!

Thanks,
:-Dustin

** Changed in: ecryptfs-utils (Ubuntu)
       Status: Triaged => Fix Released

** Changed in: ecryptfs
       Status: New => Fix Released

-- 
netboot newuser and ecryptfs fails to login
https://bugs.launchpad.net/bugs/317895
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Status in eCryptfs - Enterprise Cryptographic Filesystem: Fix Released
Status in “ecryptfs-utils” source package in Ubuntu: Fix Released

Bug description:
Steps to reproduce:

1. take the netboot directory from the alternate CD and setup a tftp server 
with it
2. boot a system over the network using the attached preseed file
3. login with that user after installation is done

At login the user cannot mount it's ~/.Private directory over to ~/.

I fixed this by doing:

1. login as root
2. rm -fr ~user/.ecryptfs ~user/.Private
3. su - user
4. ecrypt-setup-private
5. changed .Private/Private.mnt to point to /home/user instead of 
/home/user/Private

There might not be a simple way to provide a password from a preseed file since 
the password is encrypted in this file.


Note:
- when using the preseed file provided, do not provide any manual input (except 
if something fails and you need to hit continue).

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