I'm pretty sure this had been filed before, but I couldn't find any open bugs on
this, so I'm assuming it was unintentionally closed as WONTFIX for some earlier
release and posting it again.

A rootpw --iscrypted line in a kickstart file is ignored if the kickstart
install is interactive.  I believe the reason has to do with the encrypted
password not being suitable for use in the interactive password form, but there
must be a way to preserve it so as to not require the password to be entered by
hand.