Thank you, you nailed it down. The problem was that I have configured
the encrypted USB OS with my encrypted system so I couldn't use the Luks
name "root" twice. I guess that's the reason why the initramfs script
hasn't created the cryptsetup conf file. At least it worked with a Live
CD finally when only the USB root partition was opened.

-- 
Gutsy: cryptsetup fails for encrypted rootfs on slow devices (USB)
https://bugs.launchpad.net/bugs/164044
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