Comment 3 for bug 706338

Okay, I've given it some more work.

First, it seems that something is failing on install after all, it says:
"package init file 'src/__init__.py' not found (or not a regular file)". This is not surprising as the file was renamed to Environment.py a couple of revisions ago. Is it supposed to be there?

Anyway, it seems that the new files were colliding with some old ones, so i'm calling them directly in the compile-dir now. The bug remains. I have constructed files that induce this behaviour, below is also a log when trying to run rubber on them. I coud only attach one file, so the .bib goes here: (and yes, they work just fine with latex and bibtex compiled manually)

bibloi.bib:
----------------------------------cut------------------------------
@Article{a,
  author = {A. Author},
  title = {Title},
  journal = {Journal},
  year = {1999},
  volume = {5}
}
----------------------------------cut------------------------------

 ~/tmp/rubber/rubber -dvv example.tex
This is Rubber version 1.1.
built-in module pdftex registered
parsing /home/jernlas/src/latex/test/example.tex
built-in module bibtex registered
dependencies: ['/home/jernlas/src/latex/test/example.tex', '/home/jernlas/src/latex/test/biblio.bib']
checking if compiling is necessary...
building additional files...
compiling example.tex...
executing: pdflatex \nonstopmode \input{example.tex}
  with environment: {'TEXINPUTS': '.:.:'}
process 12781 (pdflatex) returned 0
running post-compilation scripts...
[bibtex] checking if BibTeX must be run...
[bibtex] no BibTeX log file
running BibTeX on example...
There were errors making the bibliography.
There were errors compiling example.tex.