I just tested an encrypted configuration on real hardware using the
kubuntu alternate amd64 ISO (20080417.1), and can only confirm some of
the symptoms:

1. It was impossible to cancel the erasure while it was in progress.
The Cancel button did not have focus, and there was no response when
pressing tab.

2. Erasing took a very long time!  There was no indication of progress,
but with the size of the disk I was using, 1% is a lot, so I probably
aborted before it would have displayed any progress.

I did not wait for it to finish, but I was able to switch to a text
console with alt+f2 and confirm that blockdev-wipe was running, and
there was plenty of disk activity, so I saw no indication that there was
a hang in my case.

-- 
When selecting LVM Crypt, erase never ends
https://bugs.launchpad.net/bugs/217815
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