This is happening to my install with today's 3/17/2010 LucidLynx 64 bit build.
On a Dell Latitude E6400, Intel Core 2 [email protected] GHz, 4 GB Memory, and 80.0 GB 
ATA Hitachi HTS72328 hard drive. 
(Encrypting with HardyHeron worked on Monday September 29th, 2009)
(This same operation worked on a different Dell E6400 using LucidLynx Alternate 
CD burned on or about Feb 22, 2010. It had a different set of problems, but not 
this particular problem.)
Anxiously waiting for a fix or work around.

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Setting up swap fails when setting lvm+encryption
https://bugs.launchpad.net/bugs/539324
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