Live-magic not making build

[Gotit]

Live-Magic 1.7
Lucid 10.04

Live-magic is not making the USB or CD build when the "Apply" button is pressed.

Output from terminal for live-magic v1.7:
gotit@home-desktop:~$ live-magic
/usr/lib/pymodules/python2.6/LiveMagic/controllers/wizard.py:22: DeprecationWarning: The popen2 module is deprecated. Use the subprocess module.
  import popen2
Traceback (most recent call last):
  File "/usr/lib/pymodules/python2.6/LiveMagic/controllers/wizard.py", line 51, in on_wizard_apply
    self.model = Config(build_dir, **data)
  File "/usr/lib/pymodules/python2.6/DebianLive/__init__.py", line 48, in __init__
    raise IOError, out
IOError: sh: lh_config: not found