In order to verify this bug I once again executed the following steps on
a completely different machine, where I did a full, fresh installation
from scratch and precisely recorded all steps I made:

* Inserted Ubuntu Maverick 10.10 Alternative i386 CD and booted the installer 
(selecting "Command line system" at the first screen via F4)
* Installed the system normally, using the option "erase whole drive" and when 
asked selected to use an encrypted home directory
* apt-get update && apt-get dist-upgrade
* reboot
* apt-get install lubuntu-desktop
* reboot
* logged into lxde, observed the same problem as the initial poster (verified 
by going to preferences -> openbox configuration manager; when trying to change 
any theme, the permission denied error came up because it could not write to 
the home directory)
* shutdown
* bootup, login to console
* added the proposed-proposed line into /etc/apt/sources.list and created 
/etc/apt/preferences (exactly as described in the wiki linked in comment #11)
* executed the following command line: apt-get install lxdm/maverick-proposed
* reboot
* logged into new lxde session
* the message "record your passphrase ..." came up, clicked it away.
* went into openbox configuration manager, this time changing the theme worked 
fine.
* inserted the same USB pen drive that failed in my previous machine. And it 
failed again with the same error message!
* inserted a different USB pen drive - same failure
* executed "ck-list-sessions": Again, two sessions are shown.

Sorry, but I really can't confirm your fix guys!

-- 
encrypted home-folder not unlocked when login
https://bugs.launchpad.net/bugs/635698
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