Just performed a fresh install of 10.04 (which I believe ran an update during the installation process) and was still confronted with the poorly-written message at the top of this page. Is the "fix released" just for future releases, or was it supposed to be applied during the installation process?
Just for clarification, the definition here clarifies where the confusion came from for me:
"Passphrases differ from passwords. A password is usually short — six to ten characters..."
"Passphrases are generally stronger, ... 20 to 30 characters or more is typical"
The second dialog says to "enter your passphrase". Simply changing that to read "enter your password" would have prevented this entire bug report for me.