You have been subscribed to a public bug by Jamie Strandboge (jdstrand):

Binary package hint: ecryptfs-utils

Doing Private folder according to
https://wiki.ubuntu.com/EncryptedPrivateDirectory rendered my /etc/pam.d
/common-auth so, that it allowed login without password

The content of the common-auth

$ cat /etc/pam.d/common-auth 
password required pam_ecryptfs.so
auth required pam_ecryptfs.so unwrap

So far I've managed to reproduce this every time when running `sudo 
ecryptfs-setup-confidental`. Passwordless login works both in 
GDM and terminal. I'm running up-to-date Intrepid.

** Affects: ecryptfs-utils (Ubuntu)
     Importance: Undecided
         Status: New

-- 
ecryptfs accidentally permits password-less logins
https://bugs.launchpad.net/bugs/243361
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