I am having the same issue, using lkus dm_crypt mount on user login.
Using ubuntu 9.04 with all updates current as of today.
I made a sample wrapper script also like said above, but it still hangs with 
the --timeout=10

#!/bin/sh
OPTION=""
if [ "$1" = "settle" ]; then
  OPTION="--timeout=10"
fi
/sbin/udevadm.orig "$@" $OPTION

-- 
udevadm settle hangs
https://bugs.launchpad.net/bugs/387086
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