How to create separate /home partition when using full disk encryption feature in the Ubuntu 12.10 installer?
Warning: Keep in mind what you are doing has to be done right or you may potentially destroy other systems on your hard drive or data on other partitions. If you are installing to the entire hard drive and want to overwrite the entire disk, no worries.
When you are installing, when you see this screen:
Choose Something else.
You will need to create the minimum of two partitions (three if you want a swap).
Create one partition for you system and set it's mount point to '/'
Create another partition for your home directory and set it's mount point to '/home'
Create a swap partition as well if you need one.
When you are asked to encrypt the /home directory, choose that option.
See this tutorial before you start this process. If you have another system installed already and want it to install beside it, make sure you back it up with remastersys or just back up your files.