LTSP chroot build fails at 50% on xubuntu systems due to a missing package in the ship seed

Edubuntu 6.10 latest dailies (10/10/06), beta, and knot 3, as well as Xubunutu alternate for same versions all fail in LTSP installations on multiple systems. The install gets to the "Building LTSP chroot" part, gets to 50% and after a few minutes fails.

Install error is:
!! Build LTSP chroot
Installation step failed
An installation step failed. You can try to run the failing item again from the menu, or skip it and choose something else. The failing step is: Build LTSP chroot

Console reports:
Oct 10 21:12:10 in-target: Adding 'diversion of/sbin/start-stop-daemon to /sbin/start-stop-daemon.real by ltsp-client'
Oct 10 21:12:10 in-target: Adding 'diversion of /etc/mtab to /etc/mtab.real by ltsp.client'
Oct 10 21:12:10 in-target: '/opt/ltsp/i386/etc/apt/sources.list' -> '/opt/ltsp/i386/etc/apt/sources.list.old'
Oct 10 21:12:10 in-target: Get:1 file: edgy Release.gpg [189B]
Oct 10 21:12:10 in-target: Get:2 file: edgy Release [1874B]
Oct 10 21:12:10 in-target: Ign file: edgy/main Packages
Oct 10 21:12:10 in-target: Ign file: edgy/restricted Packages
Oct 10 21:12:10 in-target: Fetched 2063B in 1s (1635B/s)
Oct 10 21:12:10 in-target: Reading package lists...
Oct 10 21:12:10 in-target:
Oct 10 21:12:10 in-target: Reading package lists...
Oct 10 21:12:10 in-target:
Oct 10 21:12:10 in-target: Building dependency tree...
Oct 10 21:12:10 in-target:
Oct 10 21:12:10 in-target: E:
Oct 10 21:12:10 in-target: Couldn't find package ltspfsd
Oct 10 21:12:10 in-target:
Oct 10 21:12:10 in-target: laptop-detect is already the newest version.
Oct 10 21:12:10 in-target: error: LTSP client installation ended abnormally
Oct 10 21:12:10 main-menu[2905]: WARNING **: Configuring 'ltsp-client-builder' failed with error code 1
Oct 10 21:12:10 main-menu[2905]: WARNING **: Menu item 'ltsp-client-builder' failed.