I got into this trap while trying to decrypt my FileVault 2 partition. What I did to get out of it was roughly the following:
> diskutil cs list
I found my UUID in the list of Core Storage drives. It's the one listed as locked and encrypted.
> diskutil cs unlockVolume [your UUID]
Entered my FV2 password here. It gets unencrypted. The output tells you the virtual device node at which the unencrypted partition can be accessed.
Get an external drive large enough to store the unencrypted data.
Next we need to copy the decrypted data off the drive into a DMG file on the external drive.
> hdiutil create -srcdevice [the /dev/disk* mountpoint given by unlockVolume] /Volumes/[external drive name]/unencrypted.dmg
This will create a disk image of your partition on the extrenal drive. *Warning* this is unencrypted data.
That will take some time. Go grab a coffeee.
When it's done you'll need to verify the image.
> asr imagescan --source /Volumes/[external drive name]/unencrypted.dmg
That will also take some time.
It's done? Yay! Now we're going to nuke your FV2 partition. Be careful here.
Find your partition using
> diskutil list
Double check it's right!
> diskutil eraseVolume JHFS+ [make up a name for the drive] /dev/[your partition]
You've now destroyed the FV2 partition and reformatted it as a vanilla Journaled HFS+ partition.
We're now gonna copy over your unencrypted data from the external drive's DMG
> asr restore --source /Volumes/[your external drive]/unencrypted.dmg --target /dev/[your partition] --erase
This will take a while. Once it's done you *should* be able to boot into your partition with no problems.
If it worked, do a secure erase of the external drive's DMG. You've now got a vanilla Lion install without FV2. I recommend backing it up now. Then you can retry enabling FV2 or leave it as-is.
Whew!