Ahh, I see... you have stacked lvm on top of crypt, rather than the
other way around, so the whole pv is encrypted.  I am confused by your
statements about grub's lvm module, because not only does grub not need
it, but loading it would not do any good.  It is not needed because you
have /boot on its own partition, and it would not do any good since grub
does not know how to decrypt the PV.

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https://bugs.launchpad.net/bugs/1000927

Title:
  12.04 new install or update: if LVM + full encrypted disk grub
  installation fails!

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