I encountered this problem today.

I added a serial-to-USB converter to my Xubuntu 12.04 system to
configure some network devices.  I added my user account to the dialout
group and then relogged.  After performing some config on some switches
I attempted to open my home directory via Thunar and was greeted with
the error described by everyone else.

I do not have "Display chooser on login" enabled in Settings > Session
and Startup, however, unmounting /home/myuser/.gvfs did work.

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https://bugs.launchpad.net/bugs/754618

Title:
  Failed to open encrypted home directory

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