I have some results from actual usage more similar to
http://testcases.qa.ubuntu.com/Install/AlternateEncryptedHome

Ubuntu alternate i386 alpha3: 
LVM install, no encrypted volumes. After I set up a default user, debinstall 
prompts if I want encrypted home dir, and I choose yes. Finnish install but 
don't reboot. Get shell and cat /target/etc/passwd. Default user (uid=1000) has 
NOT been added.

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https://bugs.launchpad.net/bugs/820460

Title:
  Encrypted LVM install will not allow login in Xubuntu Alpha3

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