A new variant of the bug is present in the CD install of 10.04 LTS:
On a freshly installed system, with the first user having an encrypted home directory, the drop down list in "Login Screen Settings" for the auto-login user is indeed blanked.
If a second user is added - also with an encrypted home directory - the second user IS selectable as an auto-login user with all the consequences described above. It seems that only the first user is "unlisted".
A new variant of the bug is present in the CD install of 10.04 LTS:
On a freshly installed system, with the first user having an encrypted home directory, the drop down list in "Login Screen Settings" for the auto-login user is indeed blanked.
If a second user is added - also with an encrypted home directory - the second user IS selectable as an auto-login user with all the consequences described above. It seems that only the first user is "unlisted".
Installed gdm version: 2.30.0-0ubuntu5