package fuse-utils 2.8.4-1ubuntu1.3 failed to install/upgrade: subprocess installed post-installation script returned error exit status 1

[Tim Doyle]

This is probably a rare use case, but here goes:
Steps to repeat:
1) create USB startup disk using usb-creator-gtk program, image of ubuntu-10.10-amd64, from ubuntu-10.10-amd64 host.
2) run live installer on HP G42-415DX laptop.
3) choose "Try Ubuntu".
3) sudo apt-get update.
4) sudo apt-get upgrade.
-- observe various dependencies not met and packages in not completely installed state.
5) reboot.
-- observe this + others (e.g. initramfs-tools 0.98.1ubuntu6) "failed to install or upgrade" notifications.

What I expect to happen:
step 4: successful upgrade all packages.
step 5: no "package problems" notifications.

ProblemType: Package
DistroRelease: Ubuntu 10.10
Package: fuse-utils 2.8.4-1ubuntu1.3
ProcVersionSignature: Ubuntu 2.6.35-22.33-generic 2.6.35.4
Uname: Linux 2.6.35-22-generic x86_64
Architecture: amd64
Date: Fri May 13 18:35:45 2011
ErrorMessage: subprocess installed post-installation script returned error exit status 1
LiveMediaBuild: Ubuntu 10.10 "Maverick Meerkat" - Release amd64 (20101007)
SourcePackage: fuse
Title: package fuse-utils 2.8.4-1ubuntu1.3 failed to install/upgrade: subprocess installed post-installation script returned error exit status 1

[Ubuntu Foundations Team Bug Bot (crichton)]

Thank you for taking the time to report this bug and helping to make Ubuntu better. Unfortunately, the package installation error message that you have received is actually a failure with lzma and a generic one at that. The following steps may help resolve the issue. Please execute the following command, as it will clear your package cache, in a terminal:

sudo apt-get clean

Then try performing the update again as this may resolve your issue. We plan to make lzma errors more informative and that work is being tracked in bug 691985 which I will mark this a duplicate of.