Thanks everyone for the feedback, I am marking this bug as won't fix as
it is not something we can fix and this kernel is not updated anymore.

Hopefully this bug will not be there in the new Puredyne kernel...

** Changed in: puredyne-live
       Status: Confirmed => Won't Fix

** Changed in: puredyne-kernel
       Status: Confirmed => Won't Fix

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https://bugs.launchpad.net/bugs/485858

Title:
  system hang on "starting init crypto disks [OK]"

Status in Puredyne kernel:
  Won't Fix
Status in Puredyne liveCD/DVD/USB/HD:
  Won't Fix

Bug description:
  this has been duplicated on two T43s and i also observed this in some 
machines in access space...
  i made a fresh install with automatically log in user and an ext4 partition - 
i was able to log in sometimes but mostly it hangs on
  "starting init crypto disks [OK]"
  seems erratic - i installed my x41 exactly the same way and have had no 
problems
  i also after install tried a aptitude safe-upgrade but that didn't help



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