EDIT: (Wrecked up the last post)

The Software install -problem wasnt irrelevant - see
(https://bugs.launchpad.net/ubuntu/+source/debian-
installer/+bug/1417918,
https://bugs.launchpad.net/ubuntu/+source/pkgsel/+bug/1065349)

1. Workaround; The system is bootable in recovery mode and can be fixed
with a simple "sudo apt-get install lubuntu-dekstop" (after adding the
repositories to /etc/apt/sources..list - it only contains the CD after
the failing install)

2. Clean Install:   use "Install" ( Or "Expert install" - thats in
unetbootin-menu) This will lead to another bug when installing MBR if
you're using a pendrive (https://bugs.launchpad.net/ubuntu/+source
/debian-installer/+bug/1426219) but just select "No" when installing MBR
and you can choose the target device.

That way I installed a working guided encrypted LVM from lubuntu 14.04.1
alternate i386


** Summary changed:

- Clean Install with encrypted LVM fails to boot with splash - recovery works 
+ Encrypted LVM fails to install (Lubuntu-alternate-14.04)

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https://bugs.launchpad.net/bugs/1424789

Title:
  Encrypted LVM fails to install (Lubuntu-alternate-14.04)

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