I can report the same problem (error message: "Cannot allocate memory") when 
using the method outlined in 
https://help.ubuntu.com/community/EncryptedPrivateDirectory 

# Move the application's data directory (e.g. ~/.mozilla or
~/.evolution) into your ~/Private directory

 mv ~/.evolution ~/Private

-- 
Error when copying directory tree with Nautilus to ~/Private using ecryptfs
https://bugs.launchpad.net/bugs/292429
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