Please note that Marc Gariepy works with me and lives something like 2 minutes 
away from me :)
I've been seeing the exact same behavior on his laptop as on mine though his is 
a perfectly clean Lucid install and doesn't use LVM (instead the ext4 /home 
partition is directly in the LUKS volume).

At boot time, we get the passphrase prompt correctly, after entering the key 
the prompt disappears and we get stuck there (as on my laptop).
Commenting the /home line in /etc/fstab and rebooting will make the laptop boot 
successfully though he'll then have to manually do the "cryptsetup luksOpen" 
and "mount".

-- 
[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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