The dpkg log attached to your report shows the following error:
Log started: 2010-08-12 21:57:24
Can not write log, openpty() failed (/dev/pts not mounted?)
Can not write log, openpty() failed (/dev/pts not mounted?)
Log ended: 2010-08-12 21:57:31
Please show the output of 'mount' on this system. It looks like you
have some sort of systemic problem here unrelated to cryptsetup.
** Changed in: cryptsetup (Ubuntu)
Status: New => Incomplete
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package cryptsetup (not installed) failed to install/upgrade: subprocess
installed post-removal script returned error exit status 2
https://bugs.launchpad.net/bugs/617620
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