booting from encrypted lvm is not supported.
When using the live media, i have no problem accessing the encrypted lvm (after adding a few packages), and installing it there.
the issue at hand is that the initrd does not support encrypted lvm booting, and initrd created with dracut initrd generator fails to locate the init. the system is otherwise operational (when chrooting into it).
please consider extending initrd with encrypted lvm support.
i might try doing it myself, if nobody is up to the task.
(from redmine: issue id 486, created on 2010-12-07, closed on 2011-10-27)
main/mkinitfs: upgrade to 2.2.0 ref #486