On the latest Gutsy the /sbin/cryptsetup has library dependencies in /usr/lib. If /usr is a separate partition the cryptdisks-early startup fails as the cryptsetup binary cannot find the necessary libraries (/usr has not been mounted yet). Temporarily moving the dynamic libraries to /lib fixes this problem.
Binary package hint: cryptsetup
On the latest Gutsy the /sbin/cryptsetup has library dependencies in /usr/lib. If /usr is a separate partition the cryptdisks-early startup fails as the cryptsetup binary cannot find the necessary libraries (/usr has not been mounted yet). Temporarily moving the dynamic libraries to /lib fixes this problem.