I had converted an originally unencrypted home directory on 10.04 to an
encrypted home directory using the guide at:
https://wiki.ubuntu.com/EncryptedHomeFolder. My recent upgrade to 10.10
caused the error described here.

Temporary work-around: Manually downgrading util-linux to 2.16 and
downgrading mount to the previous release (i.e., downloading via the
repository pools and installing with dkpg) reenabled the encrypted home
folder on login. I assume it was the util-linux downgrade and not the
mount downgrade that helped.

-- 
upgrade to 10.10 breaks login if using pam_encfs
https://bugs.launchpad.net/bugs/658197
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