My new problem with running losetup at boot time for encrypted root.

I'm running an encrypted root Kubuntu system.  Yesterday I upgraded to 
Kubuntu 9.04 thus moving from a 2.6.27 to a 2.6.28 kernel.  I understand 
the problem with the new kernel, and have download a proper kernel from 
<http://ubuntu.cern.ch>, so this is not my problem.  I am running loop-aes 
version 3.2f-1cern1+2.6.28-14.47.

I have added an losetup command in a custom
/etc/initramfs-tools/scripts/local-top/loop_aes file.  After doing some 
sanity checking the last line in my file is:

/sbin/losetup -v -T -e AES256 -G / -K /keyfile.gpg -s [CENSORED] /dev/loop0 /dev/sda

Please note that I have successfully been using this setup for around 2 
years before now. (Techinically I added the `-v' and `-T' flags today. 
The `-v' didn't seem to add any information).

After the update, when I get to this point in the boot sequence, the 
command no longer prompts for a Password.  Instead it now immediately 
fails with a gpg decryption failed error, the same error you get if you 
don't answer the password correctly.

After this failure I drop down into busybox (because it times out wating 
for the /dev/loop0 device which is the root device).  The strange bit is 
that in busybox I can type in that exact losetup command and it works 
properly.  It prompts for my password, and creates the loop device 
properly.  I can exit busybox and then booting continues normally.

I also tried adding the flag `-p0' to the losetup command.  This also 
works.  Of course, there is no prompt, and the password appears in plain 
text on the console.  Obviously that isn't an acceptable solution.

I added the `cat' command before the losetup call to test the console.  It 
works as expected.

I guess that there is something strange going on between how losetup calls 
gnupg and how gnupg gets and manipluates the console to prompt for and get 
the password (without echoing to the console), but I really don't know how 
to proceed to debugging this.  Maybe someone more familiar with losetup 
and the linux boot process may have some idea what may have changed in 
this Kubuntu upgrade that would cause the problem I described.

Thanks for any help.  I'd love to get loop-aes working nicely for me 
again.

-- 
Russell O'Connor                                      <http://r6.ca/>
``All talk about `theft,''' the general counsel of the American Graphophone
Company wrote, ``is the merest claptrap, for there exists no property in
ideas musical, literary or artistic, except as defined by statute.''

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