After further experimentation, I've found that the partitioning and the
use of encrypted home directory doesn't matter.  I chose "use the whole
disk" automatic partitioning, and didn't select encrypted home
directory, and the installer still crashed while attempting to use
grub2.

I have the computer nearby and am willing to run further experiments.

Also, I apologize for not mentioning it, but this is using the 11.04
daily build from 4/18, amd64 desktop.  sha1sum is
b1bb9ae918419fc7f5c2577db7b7e4ab82ac898f.

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https://bugs.launchpad.net/bugs/766740

Title:
  GrubInstaller failed with code 1

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