I installed from a live iso, created a separate /boot and encrypted root filesystem. Booted into that system and created a snapshot. Tried to boot the snapshot.iso and got the same error I got when we were experimenting with UUIDs in fstab - "cryptsetup: evms_activate is not available”
This happens with the squeeze version of refracta with the default version of snapshot (9.0.2...) as well as with wheezy and the latest version of snapshot (9.0.5-3.) I'm not sure what to do about it, or if anything should be done about it. Maybe it makes sense that you can't make a live CD of a system that you think needs to be encrypted.