The following two packages are built in my PPA.  Please respond here with any 
bugs/issues:
 * adduser - 3.110ubuntu2~ppa1 
 * ecryptfs-utils - 66-2ubuntu4~ppa1

See:
 * https://launchpad.net/~kirkland/+archive

To test, enable my PPA for Jaunty, and upgrade these two packages.

Then, as root, create a new user with:
 # adduser --encrypt-home $user

Fill in the required information, and password accordingly.  Login as
that user and you should be able to operate as usual, with your entire
home directory encrypted.

Note that:
 * your encrypted data will reside in /home/$user/.Private
 * this directory will not be visible while mounted
 * your ecryptfs configuration data, which is required to establish the mount 
will live in /var/lib/ecryptfs/$user and will be symbolically linked into 
/home/$user

Enjoy
:-Dustin

-- 
add support for setting up encrypted home directory on user creation
https://bugs.launchpad.net/bugs/302870
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