I gave it a go with a fresh image of Jaunty LPIA in VirtualBox, and the
same issue (with the same error in the log) occurs when installing with
an encrypted home directory.

sudo works fine if you do not choose to encrypt the home directory.

It appears, then, that this may in fact be a bug with "encryptfs-setup-
private".

I attempted to run the same test (installing with home directory
encryption and without) with the latest daily of Karmic (Aug. 15), but
the VM aborts on boot.

I might give it a go with Karmic Alpha 4, though I'm a bit strapped for
time for the next couple of days.

-- 
Primary user not added to sudoers file by LPIA installer
https://bugs.launchpad.net/bugs/413883
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