Hi Roert,
I know it cannot work if you encrypt your whole $HOME directory, but there is 
no reason it should not work if you have only one encrypted directory 
("Private" it is called, I am not sure now whether it is the default or my 
name) in your otherwise unencrypted directory. It worked in Maverick after all.

So I think the bug is that assumption that .encryptfs means encrypted
$HOME directory is invalid. Therefore, the check should be more
intelligent, but I have no idea how to do that:-).

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https://bugs.launchpad.net/bugs/753707

Title:
  gdm autologin does not work in Natty if ecryptfs is used

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