So I just got this myself, trying to branch from Launchpad:

mbp@grace% bzr branch lp:~mbp/bzr/progress progress
bzr: ERROR: bzrlib.errors.ErrorFromSmartServer: Error received from smart server: ('error', "Absent factory for ('ostools.py-20060731163025-npjffm46rgnkl50d-1', '<email address hidden>')")

Traceback (most recent call last):
  File "/usr/lib/python2.6/dist-packages/bzrlib/commands.py", line 831, in exception_to_return_code
    return the_callable(*args, **kwargs)
  File "/usr/lib/python2.6/dist-packages/bzrlib/commands.py", line 1026, in run_bzr
    ret = run(*run_argv)
  File "/usr/lib/python2.6/dist-packages/bzrlib/commands.py", line 643, in run_argv_aliases
    return self.run(**all_cmd_args)
  File "/usr/lib/python2.6/dist-packages/bzrlib/builtins.py", line 1147, in run
    source_branch=br_from)
  File "/usr/lib/python2.6/dist-packages/bzrlib/bzrdir.py", line 1176, in sprout
    result_repo.fetch(source_repository, revision_id=revision_id)
  File "/usr/lib/python2.6/dist-packages/bzrlib/repository.py", line 1552, in fetch
    find_ghosts=find_ghosts, fetch_spec=fetch_spec)
  File "/usr/lib/python2.6/dist-packages/bzrlib/decorators.py", line 192, in write_locked
    result = unbound(self, *args, **kwargs)
  File "/usr/lib/python2.6/dist-packages/bzrlib/repository.py", line 3126, in fetch
    pb=pb, find_ghosts=find_ghosts)
  File "/usr/lib/python2.6/dist-packages/bzrlib/fetch.py", line 82, in __init__
    self.__fetch()
  File "/usr/lib/python2.6/dist-packages/bzrlib/fetch.py", line 108, in __fetch
    self._fetch_everything_for_search(search)
  File "/usr/lib/python2.6/dist-packages/bzrlib/fetch.py", line 136, in _fetch_everything_for_search
    stream, from_format, [])
  File "/usr/lib/python2.6/dist-packages/bzrlib/repository.py", line 4029, in insert_stream
    return self._locked_insert_stream(stream, src_format, is_resume)
  File "/usr/lib/python2.6/dist-packages/bzrlib/repository.py", line 4058, in _locked_insert_stream
    for substream_type, substream in stream:
  File "/usr/lib/python2.6/dist-packages/bzrlib/remote.py", line 1754, in missing_parents_chain
    for kind, substream in stream:
  File "/usr/lib/python2.6/dist-packages/bzrlib/smart/repository.py", line 467, in record_stream
    for bytes in byte_stream:
  File "/usr/lib/python2.6/dist-packages/bzrlib/smart/message.py", line 336, in read_streamed_body
    _translate_error(self._body_error_args)
  File "/usr/lib/python2.6/dist-packages/bzrlib/smart/message.py", line 359, in _translate_error
    raise errors.ErrorFromSmartServer(error_tuple)
ErrorFromSmartServer: Error received from smart server: ('error', "Absent factory for ('ostools.py-20060731163025-npjffm46rgnkl50d-1', '<email address hidden>')")

bzr 1.17dev on python 2.6.2 (linux2)
arguments: ['/usr/bin/bzr', 'branch', 'lp:~mbp/bzr/progress', 'progress']
encoding: 'UTF-8', fsenc: 'UTF-8', lang: 'en_AU.UTF-8'
plugins:
  explorer             /home/mbp/.bazaar/plugins/explorer [0.1dev]
  gtk                  /home/mbp/.bazaar/plugins/gtk [0.96.0.dev.1]
  launchpad            /usr/lib/python2.6/dist-packages/bzrlib/plugins/launchpad [1.17dev]
  netrc_credential_store /usr/lib/python2.6/dist-packages/bzrlib/plugins/netrc_credential_store [1.17dev]
  pqm                  /home/mbp/.bazaar/plugins/pqm [1.3dev]
  qbzr                 /home/mbp/.bazaar/plugins/qbzr [0.11dev]
*** Bazaar has encountered an internal error.
    Please report a bug at https://bugs.launchpad.net/bzr/+filebug
    including this traceback, and a description of what you
    were doing when the error occurred.


This may be a regression caused by their recent rollout of 1.16rc1?