I can confirm on my rig.
Other Eucalyptus users have seen it on other platforms (RedHat/Eucalyptus/Xen),
and also linked it to the 2.6.34 kernel, see:
http://open.eucalyptus.com/forum/decrypting-image-exception
** Changed in: eucalyptus (Ubuntu Maverick)
Status: New => Confirmed
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Instances block in pending state, and don't start
https://bugs.launchpad.net/bugs/588861
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