I have this same issue here I have am not using any encryption

Ubuntu 10.10 up to date
uname: Linux 2.6.35-23-generic X86_64
Arch: amd64 
nonFreeKernModules: nvidia 360m video
package libgcrypt11 1.4.5-2ubuntu1
package arch: amd64
ProcEnviron:
                     SHELL=/bin/bash
                     PATH=(custom,user)
                     LANG=(en_US.utf8)
ProcVersionSignature: ubuntu 2.6.35-23.36-generic 2.6.35.7
SourcePackage: libgcrypt11

I have the exact same output for the dependencies as list by Tim.

Let me know if I can provide more info.

-- 
boot stops at resume: libgcrypt 1.4.5 for over 20 seconds
https://bugs.launchpad.net/bugs/665932
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