This bug was fixed in the package user-setup - 1.27ubuntu2

---------------
user-setup (1.27ubuntu2) karmic; urgency=low

  * Error out more gracefully, although with a clear red-screen error, if
    /dev/shm/.ecryptfs-$USER doesn't exist when trying to set up home
    directory encryption (LP: #395082).

 -- Colin Watson <[email protected]>   Fri, 03 Jul 2009 13:47:52 +0100

** Branch linked: lp:~ubuntu-core-dev/user-setup/ubuntu

** Changed in: user-setup (Ubuntu)
       Status: New => Fix Released

-- 
No sudo access after installing of Ubuntu amd64 from July 2 daily.
https://bugs.launchpad.net/bugs/395082
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Status in “ecryptfs-utils” package in Ubuntu: New
Status in “user-setup” package in Ubuntu: Fix Released

Bug description:
I was installing and enabled encrypted home, which at a glance of the syslog, 
seems to have broken things to the point where  I wasn't added to the groups I 
should have been.

Syslog attached.

 affects ubuntu/user-setup


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