Comment 7 for bug 4844

Workaround:

This is what I figured out.
I opened the folder /var/cache/apt-proxy/.apt-proxy-import/backends/{ubuntu\ubuntu-security}/apt/lists, as root, under nautilus.
Luckily, nautilus has this good feature of showing the first few lines of the contents of the file...
The files in the folder, were all linked to some other corresponding file, which is generated (or actually downloaded), when a client requests for the packages. (in newbie terms, when the client does an apt-get update, during an initial apt-proxy setup, the server first downloads the Packages.bz2 file, extracts it, )... and this is where the error occurs.
The 'Packages' file happens to be empty, and is not actually what is the content in 'Packages.bz2'.
So, I manually, yes it's a bit tough, extracted the files, and replaced the Packages file.. and then after repeatedly doing this, for all multiverse / universe / restricted / andwhatnot.. apt-proxy-import actually did import all the files...

Its worth it if u have a large amount of cache inbuilt.

But still.. I'd love to see the bug fixed..