Hi I have a similar problem. I used current Kubuntu beta live CD (64bit).
It boots to  a black screen with just a cursor visible.
On console 2 it stays at "cryptsetup".
My Hardware:
Dell Precision  6400 Notebook,
Nvidia Quadro FX 1600M Graphic-Chip (10de:040d),
4gb Ram

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karmic beta live cd no display output (no X, no tty)
https://bugs.launchpad.net/bugs/444123
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