This had been a long standing issue in udev that has been fixed just recently. Can you please upgrade your system to the latest Feisty packages and test again? For me and many other people it now works out of the box.
If it does not work for you, please do the steps on https://wiki.ubuntu.com/DebuggingRemovableDevices. Thank you! ** Changed in: gnome-volume-manager (Ubuntu) Status: Unconfirmed => Needs Info -- Feisty Herd 4 does not mount encrypted partition https://launchpad.net/bugs/88213 -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs
