I have a similar issue without LVM.
I installed from netinstall today. 

i have 
/boot > /dev/sda1 ext2
/ > /dev/sda2 ext4
/home > /dev/sda3 crypt setup ext4

/home is ext4 partition over LUKS encrypted partition

-- 
[lucid] plymouth in initramfs doesn't know to chroot() when init does, can't 
load files from disk
https://bugs.launchpad.net/bugs/509487
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