I confirm the exact same issue.

Hypervisor: Windows 8.1
Guest: Kali Linux 1.0.4 x64
Install: Default GUI install with LVM encryption

I experienced the same issue when installing on an encrypted lvm xfs partition setup.

The problem occurs when the kernel can't find an entry for the encrypted partition in /etc/crypttab. An entry similar to the one below placed in /etc/crypttab will solve the problem.

sdaX_crypt uuid=<encrypted partition uuid> none luks

sdaX_crypt -> the target name to be created in /dev/mapper/

luks -> the passphrase will be ask during boot

initramdisk needs to be recreated and bootloader reinstalled.

So, after investigation, the issue is with the live installer (it overwrites /etc/crypttab setup by partman-crypto). This means that doing those install from the "*-mini.iso" work fine (because the live-installer udeb is not used there).

I have just pushed a fixed live-installer (version 43~kali1), you'll be able to use fixed daily images starting from tomorrow. And the next point release will have this fixed for the main ISOs. People generating their own ISO will automatically use the fixed package as well.