Comment 34 for bug 1003309

That's great you're able to access your encrypted filesystem. From your apt history, there's nothing really obvious there that could break the system on upgrade (but I may be wrong, will investigate that further).

For the moment, one thing you could try is to rebuild once again your initramfs. This should be easy to do, but it will depend on how you have your disk partitioned. Basically, you could mount your encrypted rootfs (say, in /mnt) and then mount your boot partition on /mnt/boot. Once you have this setup, you can chroot into it (sudo chroot /mnt) and rebuild the initramfs from there.

The easiest way to rebuild it should be dpkg-reconfigure linux-image-3.2.0-23-generic (I would start with the last kernel that was working). Since you're on a chroot, you could also try to apt-get update ; apt-get dist-upgrade.

Let me know if you were able to rebuild your initramfs (pay attention to any possible errors while doing this!) and if it made any difference.