It seems, that this issuee was corrected in the trunk of the upstream subversion since revision 41.
http://code.google.com/p/cryptsetup/source/diff?spec=svn47&r=41&format=side&path=/trunk/lib/setup.c&old_path=/trunk/lib/setup.c&old=38 Maybe a better patch could be build from it. This bug also reported for ubuntu 8.04 : https://bugs.launchpad.net/cryptsetup/+bug/324871
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