Confirming, with some additional details:

I have encrypted both my /home and swap, using the new options directly
in the installer in Gutsy.  On boot, the passphrase for swap is
correctly asked within the context of usplash, and the boot continues
graphically.  However, when the time comes to boot /home, it breaks
usplash and drops to text-mode as described.  After inputting the
passphrase, boot continues in text-mode.

Additionally, it should be noted that in the usplash prompt for swap, is
specifies the volume the passphrase is being requested for (in my case
embarrass-swap_crypt), but at the text mode prompt it simply says "Enter
LUKS passphrase" (iirc), with NO indication anywhere on the screen of
what volume it is for.  If a use had encrypted more volumes than just
swap and /home, they would therefore have to either a) be using the same
passphrase for all volumes, or b) have memorized the order of mounting
in the boot sequence.

-- 
When mounting encrypted drives the password should be asked for graphically and 
not in text mode
https://bugs.launchpad.net/bugs/110970
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