The problem is reproducable.
After latest updates my 10.04 Ubuntu Desktop (with cryptdisk) also hangs in
startup.
Ctrl-Alt-Del is working.
Switching to one of the tty's (Ctrl-Alt-Fx) doesn't.
The system seems to be up (server edition was reachable with SSH).
Maybe it has something to do with my script. I'll try to find out and
let you know.
** Changed in: plymouth (Ubuntu)
Status: Invalid => Incomplete
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no password prompt for cryptsetup in 10.04 64-bit server
https://bugs.launchpad.net/bugs/560105
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