i am sorry to say that i also have encrypted lvm setup, but i haven't
had any problems.  i also upgraded to jaunty using the update-manager,
and i have not had a single problem with my password being prompted etc.
i also upgraded from hardy to intrepid using the update-manager.  i did
not use the default encrypted lvm setup, though, when i installed hardy.
instead, i used manual setup so the whole disk wasn't used and i could
do snapshot backups, following this guide:
http://oei.yungchin.nl/2008/04/23/installing-ubuntu-804-with-full-disk-
encryption/

-- 
Jaunty breaks encrypted LVM password entry - system hosed
https://bugs.launchpad.net/bugs/378852
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