I can confirm this bug. It behaves nearly the same way:

I have encrypted swap und /home/user. When booting the message "Starting
early crypto disks" is displayed and in most cases I have to press some
keys to get the "Enter Passphrase" dialogue. If I don't do so I'll
sometimes have to wait minutes or the dialogue just doesn't show up.

This bug is really annoying as you think cryptsetup is completely broken
when booting for the first time.

Also running on feisty. Besides bressen a letter-key like deskribed
before changing the consoles a bit helps for me, too.

-- 
Upstart needs some key pressed to show "Enter Passphrase" on boot /  cryptsetup 
problem
https://bugs.launchpad.net/bugs/105394
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