an update:

I just wanted to let you know, that this problem persists on my other
box !

I've just installed ubuntu jaunty alpha 6 (x86_64) from alternate
install CD and after entering data to /etc/crypttab and modifying
/etc/fstab lines

the first reboot:
usplash / splash wouldn't prompt for any input and seemingly the system was 
prompting for a password but it was not viewable (probably behind the splash), 
trying to switch via ALT + F* only lead to a black screen

the only "solution" (for me) to that was to kill some processes via
Magic SysRQ Key + E, after that it continued (disc activity) and went to
gdm prompt, I immediately rebooted

on the second boot:
it prompted for the password on the splash, I entered it, it switched to 
console output and the password was readable AGAIN !

please guys - try to reproduce this and FIX it

this is really a security problem when people are able to read your
password after being entered

I can't afford buying a new laptop or a new system with integrated
fingerprint reader ;)

thanks

-- 
the password entered during boot for an encrypted partition (e.g. /home) is 
shown in plain text after having entered it (behind usplash)
https://bugs.launchpad.net/bugs/288408
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