i'm seeing this with the following crypttab:

data /dev/sda7 none luks

/dev/mapper/data is marked as bootwait in fstab. when it's not, the usual 
problems happen - gdm happily starts while my other startup scripts are waiting 
indefinitely for the frozen cryptdisks job.
When i mark it bootwait, the system will show a password prompt for a very 
short time and then switch to splash screen with "/media/data : waiting for 
/dev/mapper/data, press ESC for recovery shell". This screen is completely 
unresponsive to anything but ctrl+alt+delete, i can't even switch back to the 
password prompt.
If i start the system with nosplash, i will see the password prompt, but it 
won't read my keystrokes, exactly as described by Pete.

at this point, the only way to get my system started is using the
recovery mode.

-- 
passphrase for encrypted home partition not being read
https://bugs.launchpad.net/bugs/484272
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