Comment 1 for bug 158735

One workaround I found is to install xfonts-100dpi and xfonts-75dpi packages in the chroot environment:

sudo cp /etc/apt/sources.list /opt/ltsp/i386/etc/apt/
sudo chroot /opt/ltsp/i386
aptitude update
aptitude install xfonts-100dpi xfonts-75dpi
sudo ltsp-update-image

This provided the program with the fonts it needed to run and therefore eliminated the need for a font server. There are possibly others that may need a font server for similar programs that are not included with Ubuntu and this type of workaround might work for them also. Maybe USE_XFS should be unsupported if the requirement of it is obsolete.