I'm using LXDM 0.4.1 and I have encrypted my home folder with ecryptfs. But after a login lxdm-binary is using 100% cpu time of one core. A workaround is to login with the console before login with LXDM. There is also a report on Launchpad: https://bugs.launchpad.net/ubuntu/+source/lxdm/+bug/922363
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