Hard to find this long-term bug report now. 
I have this problem too, since a few minutes.

Today, I did a dist-upgrade on my laptop with lubuntu 12.04, including
new kernel 3.2.0-38-generic, and found myself unable to decrypt the LVM
partition that contains root-fs and home.

kernel 3.2.0-35 which operates well before update, has the same error
now.  For me, this indicates a problem in the upgrade procedure but not
in the new kernel.

I am able to reach the data via the rescue mode of the lubuntu alternate
CD.  Also, the workaround described above by jorn-g (#48) works for me.

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https://bugs.launchpad.net/bugs/1003309

Title:
  Boot fails after installing updates, error: “cryptsetup: evms_activate
  is not available"

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