i can confirm this, this seems to be severely broken.
after upgrading to kubuntu 10.10 from 10.04, kdm seems to start as
usual, but after typing in the password and hitting enter nothing
happens. console login fails as well, it just freezes after the
password.
a nasty workaround:
boot in recovery mode (netroot)
su - <username>
cd ..
encfs /home/encfs/dir /home/<username> -- -o nonempty,allow_other
startx
DistroRelease: Ubuntu 10.10
Package: libpam-encfs 0.1.4.1-4
ProcVersionSignature: Ubuntu 2.6.35-22.34-generic-pae 2.6.35.4
Uname: Linux 2.6.35-22-generic-pae i686
Architecture: i386
Date: Tue Oct 12 14:38:27 2010
** Changed in: libpam-encfs (Ubuntu)
Status: New => Confirmed
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libpam-encfs hangs after maverick upgrade
https://bugs.launchpad.net/bugs/656422
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