I am also experiencing a similar bug. I was getting the segmentation fault that the previous commenter experienced. If I stopped avahi-daemon the service worked perfectly though. After starting avahi and trying again I got a different error though. Here is the output that is currently being generated by mt-daapd with debug level 9.

I am running Ubuntu Jaunty 9.04.

jamal@jfhome:~$ sudo mt-daapd -f -d 9
Loading config file /etc/mt-daapd.conf
Opening file:///etc/mt-daapd.conf?ascii=1
Checking handler for file
opening /etc/mt-daapd.conf
Config file open
Got general/web_root, convert to general/web_root (/usr/share/mt-daapd/admin-root)
Found existing section
Got general/port, convert to general/port (3689)
Found existing section
Got general/admin_pw, convert to general/admin_pw (mt-daapd)
Found existing section
Got general/db_type, convert to general/db_type (sqlite3)
Found existing section
Got general/db_parms, convert to general/db_parms (/var/cache/mt-daapd)
Found existing section
Got general/mp3_dir, convert to general/mp3_dir (/home/jamal/Music)
Found existing section
Found 1 tokens in /home/jamal/Music
Token 1: /home/jamal/Music
Got general/servername, convert to general/servername (Firefly %v on %h)
Found existing section
Got general/runas, convert to general/runas (mt-daapd)
Found existing section
Got general/extensions, convert to general/extensions (.mp3,.m4a,.m4p,.ogg,.flac,.mpc)
Found existing section
Got general/never_transcode, convert to general/never_transcode (ogg)
Found existing section
Expanding precomments to 2048
Expanding precomments to 4096
Got general/scan_type, convert to general/scan_type (2)
Found existing section
Got plugins/plugin_dir, convert to plugins/plugin_dir (/usr/lib/mt-daapd/plugins)
Found existing section
Got plugins/plugins, convert to plugins/plugins (rsp.so)
Found existing section
Found 1 tokens in rsp.so
Token 1: rsp.so
Got scanning/process_playlists, convert to scanning/process_playlists (1)
Found existing section
Got scanning/process_itunes, convert to scanning/process_itunes (1)
Found existing section
Got scanning/process_m3u, convert to scanning/process_m3u (1)
Found existing section
Checking existence of /usr/share/mt-daapd/admin-root
Checking existence of /usr/share/mt-daapd/admin-root
Checking existence of /var/cache/mt-daapd
Checking existence of /var/cache/mt-daapd
Checking existence of /usr/lib/mt-daapd/plugins
Checking existence of /usr/lib/mt-daapd/plugins
Loading new config file.
Firefly Version svn-1696: Starting with debuglevel 9
Attempting to load plugin /usr/lib/mt-daapd/plugins/out-daap.so
Loaded plugin /usr/lib/mt-daapd/plugins/out-daap.so (daap/svn-1696)
New transcode codec list: 
Attempting to load plugin /usr/lib/mt-daapd/plugins/ssc-script.so
No ssc program specified for script transcoder.
Error loading plugin /usr/lib/mt-daapd/plugins/ssc-script.so: plugin declined to load
Attempting to load plugin /usr/lib/mt-daapd/plugins/rsp.so
Loaded plugin /usr/lib/mt-daapd/plugins/rsp.so (rsp/svn-1696)
New transcode codec list: 
Attempting to load plugin /usr/lib/mt-daapd/plugins/ssc-ffmpeg.so
Couldn't get lib handle for /usr/lib/mt-daapd/plugins/ssc-ffmpeg.so
Error loading plugin /usr/lib/mt-daapd/plugins/ssc-ffmpeg.so: /usr/lib/mt-daapd/plugins/ssc-ffmpeg.so: undefined symbol: avcodec_decode_audio
Plugin loaded: rsp/svn-1696
Plugin loaded: daap/svn-1696
Starting signal handler
Starting rendezvous daemon
Initializing avahi
Client running
Creating service group
No entries yet... skipping service create
Starting avahi polling thread
Opening database
Executing: select value from config where term='version'
Creating new db handle
Results: 0
Initializing database
Executing: select count(*) FROM songs
Executing: select value from config where term='rescan'
Executing: vacuum
Rows: 0
Executing: create index idx_path on songs(path,idx)
Query: create index idx_path on songs(path,idx)
Error: index idx_path already exists
Executing: create index idx_songid on playlistitems(songid)
Query: create index idx_songid on playlistitems(songid)
Error: index idx_songid already exists
Executing: create index idx_playlistid on playlistitems(playlistid,songid)
Query: create index idx_playlistid on playlistitems(playlistid,songid)
Error: index idx_playlistid already exists
Executing: select count(*) FROM songs
Starting web server from /usr/share/mt-daapd/admin-root on port 3689
Listening on port 3689
Opening listen://3689
Checking handler for listen
opening 3689
Doing io_listen_open
Socket opened
Preparing to listen with 5 backlog on 3689
Starting server thread
Registering rendezvous names
Adding Firefly svn-1696 on jfhome/_http._tcp
Creating service group (again?)
Creating service group
Client failure
Server disconnected, reconnecting
Client connecting
Client failure
Server disconnected, reconnecting
mt-daapd: entrygroup.c:247: avahi_entry_group_free: Assertion `*_head == _item' failed.
Aborted