Comment 2 for bug 1147348

Thanks for taking the time to report this bug, Peter.

Between 12.04 and 12.10, we had to start mounting encrypted home with the nosuid mount option to address CVE-2012-3409. I've verified that this is the reason why you can no longer use capabilities as you've described in the bug description.

I would suggest that you move the binary outside of your encrypted home directory so that you can still use capabilities. Sorry for the inconvenience.