I verified with Oneiric Desktop 20110822 which ships kernel 3.0.0-13 and the
error is still there with the same error message.
Reopening.
** Changed in: linux (Ubuntu Oneiric)
Status: Fix Released => In Progress
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https://bugs.launchpad.net/bugs/827197
Title:
/usr/bin/ecryptfs-setup-private fails with exit status 1 during
install - User's home directory not encrypted
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