I'm getting the same problem doing manual lvm+encryption.

doing the guided and taking the defaults seem to work.

I was trying to setup a single partition on the hard drive and a /boot
on a usb key when I did it.

got the exact same "Setting up the partitioner" froze at 47% problem.

Doing some more testing to find out what might work around it.

-- 
8.04 and 7.10 alternate cd install fails at 47%
https://bugs.launchpad.net/bugs/229420
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