Server failed to start during --configure: could not open file (pg_xlog): Invalid argument

[Daniel C. Axelrod]

Binary package hint: postgresql-8.4

Upon installing postgresql-8.4, the server fails to start during --configure.
The log shows:
PANIC: could not open file "pg_xlog/000000010000000000000000" (log file 0, segment 0): Invalid argument

Steps to reproduce:
-boot Ubuntu 10.10 livecd
-run Update Manager:
 -click "check"
 -install everything except:
  linux-headers-2.6.35-22
  linux-headers-2.6.35.22-generic
  linux-image-2.6.35.22-generic
-open Terminal
 sudo apt-get update
 sudo apt-get install postgresql-8.4

I will attach complete logs momentarily

ProblemType: Bug
DistroRelease: Ubuntu 10.10
Package: postgresql-8.4 8.4.5-0ubuntu10.10
ProcVersionSignature: Ubuntu 2.6.35-22.33-generic 2.6.35.4
Uname: Linux 2.6.35-22-generic i686
Architecture: i386
Date: Mon Nov 8 00:55:34 2010
LiveMediaBuild: Ubuntu 10.10 "Maverick Meerkat" - Release i386 (20101007)
ProcEnviron:
 LANG=en_US.UTF-8
 SHELL=/bin/bash
SourcePackage: postgresql-8.4