This bug was fixed in the package initramfs-tools - 0.92bubuntu48
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initramfs-tools (0.92bubuntu48) karmic; urgency=low
* Don't do OPTION=VAR checking at runtime, only do it when assembling the
initramfs; this spares us having to add extra config files to the
initramfs to enable functionality that's already been selected.
LP: #433773.
-- Steve Langasek <steve.langa...@ubuntu.com> Tue, 22 Sep 2009
00:17:13 -0700
** Changed in: initramfs-tools (Ubuntu)
Status: New => Fix Released
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USPLASH=y option in /usr/share/initramfs-tools/conf-hooks.d/cryptsetup is
ignored
https://bugs.launchpad.net/bugs/433773
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