Ok, decided to dig into it anyway. Found that I didn't have a Luks volume [0] and that was the reason for this not to work.
When I installed encrypted filesystem I used guide [1], which does not use luks volumes. Think maybe the bug reports marked as duplicates was about both methods. So I tried reinstalling a brand new Edgy and used guide [2] which uses luks volumes. I did not do the whole encrypted root thingy, just the home partition. After patching /lib/cryptsetup/cryptdisks.functions with Marc's patch in [3], and added "home /dev/sda3 none luks" to my /etc/crypttab it worked great! Thanks, [0]: /sbin/cryptsetup isLuks /dev/sda3 [1]: https://help.ubuntu.com/community/EncryptedFilesystemHowto [2]: https://help.ubuntu.com/community/EncryptedFilesystem [3]: https://launchpad.net/products/upstart/+bug/62751/comments/53 -- Upstart doesn't activate luks volumes in cryptsetup https://launchpad.net/bugs/62751 -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs