When:
/etc/rcS.d/S28cryptdisks

is executed at boot, (so after /etc/rcS.d/S28cryptdisks-early), Karmic doesn't 
wait for the input in response to the prompt. So the system loads gdm before 
the user can insert his password. Hence the system is booted without mounting 
all the disks and a ps -ef|grep cryptsetup yields this result:
root      2866  2822  0 22:36 ?        00:00:00 /lib/cryptsetup/askpass Enter 
passphrase to unlock the disk /dev/sdb2 (sdb2_encrypted): 

Others are experiencing the same:
http://ubuntuforums.org/showthread.php?t=1317162

-- 
Can't enter password for encrypted devices at boot time
https://bugs.launchpad.net/bugs/445888
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