Ubuntu OEM encrypted home installation: out of memory on first boot after end user config

Precise OEM encrypted home: 20120418

On a 1GB system, if the end user selects 'encrypt home' during setup, swap is wiped then turned off. So when the user login for the first time after end user setup, the system runs without swap which leads to 'out of memory' errors

e.g
$ ubuntu-bug ubiquity
Traceback (most recent call last):
  File "/usr/share/apport/apport-gtk", line 507, in <module>
    app.run_argv()
  File "/usr/lib/python2.7/dist-packages/apport/ui.py", line 543, in run_argv
    return self.run_report_bug()
  File "/usr/lib/python2.7/dist-packages/apport/ui.py", line 387, in run_report_bug
    self.file_report()
  File "/usr/lib/python2.7/dist-packages/apport/ui.py", line 1040, in file_report
    self.open_url(url)
  File "/usr/lib/python2.7/dist-packages/apport/ui.py", line 935, in open_url
    if os.fork() > 0:
OSError: [Errno 12] Cannot allocate memory
ubuntu@ubuntu-VirtualBox:~$ free
             total used free shared buffers cached
Mem: 1019488 900132 119356 0 320 49252
-/+ buffers/cache: 850560 168928
Swap: 0 0 0

This is similar to bug 979350 that occurs during installation.

ProblemType: Bug
DistroRelease: Ubuntu 12.04
Package: ubiquity (not installed)
ProcVersionSignature: Ubuntu 3.2.0-23.36-generic 3.2.14
Uname: Linux 3.2.0-23-generic x86_64
ApportVersion: 2.0.1-0ubuntu4
Architecture: amd64
Date: Wed Apr 18 16:00:11 2012
EcryptfsInUse: Yes
InstallCmdLine: file=/cdrom/preseed/ubuntu.seed vga=788 initrd=/install/initrd.gz quiet -- keyboard-configuration/layoutcode=fr keyboard-configuration/variantcode=oss oem-config/enable=true
InstallationMedia: Ubuntu 12.04 LTS "Precise Pangolin" - Beta amd64 (20120418)
ProcEnviron:
 TERM=xterm
 PATH=(custom, no user)
 LANG=fr_FR.UTF-8
 SHELL=/bin/bash
SourcePackage: ubiquity
UpgradeStatus: No upgrade log present (probably fresh install)