Comment 72 for bug 62751

Did you try Marc Schiffbauer`s Patch (https://launchpad.net/products/upstart/+bug/62751/comments/53)? Except for the password being printed plain text to the console it seems to work fine for LUKS volumes even with usplash.

Extending the patch to support other dm-crypt volumes is only a matter of modifying the do_noluks() function in the same way as he did with do_luks().
There is already a bug report (#55159) for the password echoing. This is caused by usplash not disableing the echo of its stdin.
With the "stty" command it is still possible to disable it in any shell script, but this is IMHO definitivly the wrong place (otherwise the usplash INPUTQUIET function should be renamed INPUTHIDDEN ;) ). But as the bugreport is still undecided it seems necessary to (temporarily) fix it in cryptdisks.functions.
The attached patch is again based on the original patch by Marc Schiffbauer and adds both no_luks usplash support and disabled stdin echo (by guarding usplash_write commands with "stty --file=$stdin -echo"). It also checks more strictly for a running usplash daemon as the existance of the fifo files just indicates that there once was a daemon running, but this may not be the case anymore when the function is called (at least they dont seem to get deleted).

I tested it over the weekend with standard dm-crypt and Luks volumes using keyfiles and passphrases to decrypt and (unlike my last futile attempt) this one worked fine with or without usplash. I did not test ssl and gpg encrypted keyfiles since there was no change within the keyscripts.