I've experienced the same unanswerable wait for a password with
a
crypto_LUKS partition on home.img but not with an --unencrypted-home
setup of a Live USB.
I noticed it also with updated Fedora 17 Live images. I suspect that
the systemd interaction with the crypto_LUKS players needs attention.
Ah--glad it's not just me.
I also wondered whether it was the change to systemd: presumably there
was some way previously of running a startup script interactively and in
the foreground, but now everything's getting forced into the background.
James