Public bug reported:

After installing Ubuntu Server 11.10 Alpha2 I could not log in, but got
something like "login incorrect". After booting to rescue I checked
/target/@home/ and /target/@/etc/passwd and the user i wanted to be
created while installing was nowhere.

(I think same happend using default partitioning with ext4. Also could
not login, bat did not check /home and passwd)

Manually partitioning was this: One primary partition with btrfs (no
boot, no swap, no seperate home)

Solution for me: Do not encrypt home.

** Affects: ubuntu
     Importance: Undecided
         Status: New

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https://bugs.launchpad.net/bugs/822270

Title:
  no user created while installing ubuntu server

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