this is fixed in hardy.
here is a backport for gutsy:
http://ppa.launchpad.net/andrearatto/ubuntu/pool/main/libp/libpam-encfs/libpam-encfs_0.1.4.1-2~ppa3_i386.deb

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libpam-encfs causes problems with sudo
https://bugs.launchpad.net/bugs/111595
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