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Description of problem: systemd tells me that it is forwarding the password prompt to unlock a partition, however nothing is forthcoming. After hitting escape I am still unable to enter the password. Version-Release number of selected component (if applicable): Latest release on F 16, sorry I am locked out now so I don't know the version number. How reproducible: Have an encrypted partition Boot and wait for the prompt
Try booting with "enforcing=0". It's probably a selinux-policy bug, see the comments here: https://admin.fedoraproject.org/updates/FEDORA-2011-14618
Yep, SELinux = mysterious failures. Thanks for pointing me in the right direction. -Erinn