I have also noticed this behaviour and it's rather perplexing. First of
all (as others have noted) there isn't any feedback at all that this
operation might take a long time (I personally expected "Creating user"
to be a rather quick operation). Second: why *does* it take so long?
Even with a big swap partition it should not take 15 minutes to zero it
out. Might providing a bigger block-size to the dd command increase the
speed? As this is time the user usually spends waiting before being able
to use his new and shiny Ubuntu installation it is a really bad first
impression.

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[karmic alpha6] Installing System with encrypted $HOME: Installer hangs at 83% 
for ~15 minutes
https://bugs.launchpad.net/bugs/432422
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