I can confirm this.  It actually has only happened to me in Gutsy.
Feisty works normally.  Home partition is encrypted with LUKS.  The
prompt won't appear until I hit a few letter keys... the timing seems
random.  It can take up to 15 seconds longer.

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Upstart needs some key pressed to show "Enter Passphrase" on boot /  cryptsetup 
problem
https://bugs.launchpad.net/bugs/105394
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