I spent a whole day trying to trace the problem in the kernel...
I got an error message:
Check kernel for support for the aes-cbc-essiv:sha256 cipher spec and verify that <your-device-here> contains at least 133 sectors.
The real problem was that my *partition was already mounted*.
cryptsetup luksFormat <my-device-here>
It finally worked after I unmounted the partition. I'm using Gentoo,
cryptsetup-luks 1.3r4.
*Can we improve the error message to check for this case and report
accordingly?*
PS Working fine so far: luks with zfs-fuse, which haven't seen much
info about.
-Sham