Hi,

I have the same issue on a HP compaq, 2.6.28-15 worked fine, everything
after is trouble. I might however shed some light on this issue:

After about 5 minutes the system does indeed ask for password, and after
5 more minutes it asks again (given that no splash screen is shown.

After this it boots up normally.

I just ran a daily update yesterday and it is still present.

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[Karmic beta] System hangs at boot while "Starting init crypto disk"
https://bugs.launchpad.net/bugs/450620
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