Comment 27 for bug 635698

In order to verify this bug I once again executed the following steps on a completely different machine, where I did a full, fresh installation from scratch and precisely recorded all steps I made:

* Inserted Ubuntu Maverick 10.10 Alternative i386 CD and booted the installer (selecting "Command line system" at the first screen via F4)
* Installed the system normally, using the option "erase whole drive" and when asked selected to use an encrypted home directory
* apt-get update && apt-get dist-upgrade
* reboot
* apt-get install lubuntu-desktop
* reboot
* logged into lxde, observed the same problem as the initial poster (verified by going to preferences -> openbox configuration manager; when trying to change any theme, the permission denied error came up because it could not write to the home directory)
* shutdown
* bootup, login to console
* added the proposed-proposed line into /etc/apt/sources.list and created /etc/apt/preferences (exactly as described in the wiki linked in comment #11)
* executed the following command line: apt-get install lxdm/maverick-proposed
* reboot
* logged into new lxde session
* the message "record your passphrase ..." came up, clicked it away.
* went into openbox configuration manager, this time changing the theme worked fine.
* inserted the same USB pen drive that failed in my previous machine. And it failed again with the same error message!
* inserted a different USB pen drive - same failure
* executed "ck-list-sessions": Again, two sessions are shown.

Sorry, but I really can't confirm your fix guys!