It was reported  that the private ecryptfs mount helper (/sbin/mount.ecryptfs_private), which is setuid-root, could allow an unprivileged local user to mount user-controlled ecryptfs shares on the local system. Because the ecryptfs helper does not mount filesystems with the "nosuid" and "nodev" flags, it would be possible for a user to mount a filesystem containing setuid-root binaries and/or device files that could lead to the escalation of their privileges. This could be done via a USB device, if the user had physical access to the system.
It was however also noted  that this may only affect version 86 and later, as the encrypted home source and destination mount points were hard-coded up until that version.
Forcing MS_NOSUID and MS_NODEV mount flags was added to version 99 (commits ,)
I also forgot to note that on Fedora and RHEL, you need to be part of the ecryptfs group to even use the ecryptfs filesystems/utilities, which lowers the attack surface considerably.
Not Vulnerable. This issue does not affect the version of ecryptfs-utils as shipped with Red Hat Enterprise Linux 5 and 6.
Created ecryptfs-utils tracking bugs for this issue
Affects: fedora-all [bug 842512]
ecryptfs-utils-99-1.fc17 has been pushed to the Fedora 17 stable repository. If problems still persist, please make note of it in this bug report.
ecryptfs-utils-99-1.fc16 has been pushed to the Fedora 16 stable repository. If problems still persist, please make note of it in this bug report.