On Mon, Feb 4, 2013 at 6:18 AM, James Heather <j.heather@surrey.ac.uk> wrote:
It appears that /etc/rc.d/init.d/livesys gets executed, but the boot
process isn't waiting for it to complete. So it runs for ever in the
background, waiting for the password.

When the machine has booted up, if I Ctrl-Alt-F2 and log in as root, I
can see that livesys is still running, as is plymouth, still waiting for
the password.

I can't work out why this would be happening on a live USB stick, but
not on a HDD installation. My other machines have seemingly the same
setup, but they run fine.

Please help... even if it's just to say that you are(n't) having this
problem. It would be nice to know if it's just me.

I've experienced the same unanswerable wait for a password with a crypto_LUKS partition on home.img but not with an --unencrypted-home setup of a Live USB.

I noticed it also with updated Fedora 17 Live images.  I suspect that the systemd interaction with the crypto_LUKS players needs attention.