package initramfs-tools 0.99ubuntu7 failed to install/upgrade: subprocess installed post-installation script returned error exit status 1

[Lucho]

Working in a live-usb with 1 GB total and 270 MB disk space persistance

ProblemType: Package
DistroRelease: Ubuntu 11.10
Package: initramfs-tools 0.99ubuntu7
ProcVersionSignature: Ubuntu 3.0.0-12.20-generic 3.0.4
Uname: Linux 3.0.0-12-generic x86_64
NonfreeKernelModules: wl
ApportVersion: 1.23-0ubuntu3
AptOrdering:
 adobe-flashplugin: Install
 adobe-flash-properties-gtk: Install
 initramfs-tools: Configure
 adobe-flashplugin: Configure
 adobe-flash-properties-gtk: Configure
Architecture: amd64
CasperVersion: 1.287
Date: Mon Oct 17 04:16:34 2011
DuplicateSignature:
 Setting up initramfs-tools (0.99ubuntu7) ...
 update-initramfs: deferring update (trigger activated)
 lzma: Encoder error: -2147467259
 dpkg: error processing initramfs-tools (--configure):
  subprocess installed post-installation script returned error exit status 1
ErrorMessage: subprocess installed post-installation script returned error exit status 1
LiveMediaBuild: Ubuntu 11.10 "Oneiric Ocelot" - Release amd64 (20111012)
PackageArchitecture: all
SourcePackage: initramfs-tools
Title: package initramfs-tools 0.99ubuntu7 failed to install/upgrade: subprocess installed post-installation script returned error exit status 1
UpgradeStatus: No upgrade log present (probably fresh install)

[Launchpad Janitor (janitor)]

Status changed to 'Confirmed' because the bug affects multiple users.