Still present in 8.10 Karmic Koala beta netbook-remix.

Related discussion:

http://ubuntuforums.org/showthread.php?p=7975573#post7975573

This might make the user to quit the installer so I think it's quite a
showstopper. Should this be nominated for a release blocker?

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[karmic alpha6] Installing System with encrypted $HOME: Installer hangs at 83% 
for ~15 minutes
https://bugs.launchpad.net/bugs/432422
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