This bug is also affecting me. (updated and upgraded intrepid) It occurs for both --raw=/dev/sde and for disk image files. Below is from a disk image file: root@LAB-GPS622-23:~# vmbuilder kvm ubuntu --suite=intrepid --arch 'amd64' --mem '128' --rootsize '1890' --swapsize '256' --kernel-flavour 'virtual' --hostname 'REMOVED' --mirror 'http://REMOVED:9999/ubuntu' --components 'main,restricted,universe' --addpkg 'vim' --addpkg 'openssh-server' --name 'REMOVED' --user 'REMOVED' --pass 'REMOVED' --libvirt qemu:///system 2009-02-19 12:06:12,619 INFO Creating disk image: /tmp/vmbuilderWj3iNW/disk0.img 2009-02-19 12:06:12,653 INFO Adding partition table to disk image: /tmp/vmbuilderWj3iNW/disk0.img 2009-02-19 12:06:12,729 INFO Adding type 1 partition to disk image: /tmp/vmbuilderWj3iNW/disk0.img 2009-02-19 12:06:12,733 INFO Adding type 3 partition to disk image: /tmp/vmbuilderWj3iNW/disk0.img 2009-02-19 12:06:12,738 INFO Creating loop devices corresponding to the created partitions 2009-02-19 12:06:12,752 INFO Creating file systems 2009-02-19 12:06:12,802 INFO mke2fs 1.41.3 (12-Oct-2008) 2009-02-19 12:06:12,973 INFO Mounting target filesystems 2009-02-19 12:06:13,038 INFO Installing guest operating system. This might take some time... 2009-02-19 12:06:51,782 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:06:51,782 INFO Moving old data out of the way 2009-02-19 12:06:51,885 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:06:52,173 INFO Searching for GRUB installation directory ... found: /boot/grub 2009-02-19 12:06:52,361 INFO Searching for default file ... Generating /boot/grub/default file and setting the default boot entry to 0 2009-02-19 12:06:52,363 INFO Searching for GRUB installation directory ... found: /boot/grub 2009-02-19 12:06:52,367 INFO Testing for an existing GRUB menu.lst file ... 2009-02-19 12:06:52,367 INFO 2009-02-19 12:06:52,368 INFO Could not find /boot/grub/menu.lst file. 2009-02-19 12:06:52,368 INFO Generating /boot/grub/menu.lst 2009-02-19 12:06:52,415 INFO Searching for splash image ... none found, skipping ... 2009-02-19 12:06:52,522 INFO grep: /boot/config*: No such file or directory 2009-02-19 12:06:52,576 INFO Updating /boot/grub/menu.lst ... done 2009-02-19 12:06:52,576 INFO 2009-02-19 12:06:52,732 INFO Searching for GRUB installation directory ... found: /boot/grub 2009-02-19 12:06:52,786 INFO Searching for default file ... found: /boot/grub/default 2009-02-19 12:06:52,790 INFO Testing for an existing GRUB menu.lst file ... found: /boot/grub/menu.lst 2009-02-19 12:06:52,871 INFO Searching for splash image ... none found, skipping ... 2009-02-19 12:06:52,900 INFO grep: /boot/config*: No such file or directory 2009-02-19 12:06:52,987 INFO Updating /boot/grub/menu.lst ... done 2009-02-19 12:06:52,987 INFO 2009-02-19 12:06:53,013 INFO Searching for GRUB installation directory ... found: /boot/grub 2009-02-19 12:06:53,845 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:06:54,051 INFO Done. 2009-02-19 12:06:54,660 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:06:54,679 INFO Running depmod. 2009-02-19 12:06:54,728 INFO update-initramfs: Generating /boot/initrd.img-2.6.27-11-server 2009-02-19 12:06:57,397 INFO Running postinst hook script /usr/sbin/update-grub. 2009-02-19 12:06:57,492 INFO Searching for GRUB installation directory ... found: /boot/grub 2009-02-19 12:06:57,837 INFO Searching for default file ... found: /boot/grub/default 2009-02-19 12:06:57,840 INFO Testing for an existing GRUB menu.lst file ... found: /boot/grub/menu.lst 2009-02-19 12:06:58,238 INFO Searching for splash image ... none found, skipping ... 2009-02-19 12:06:58,258 INFO grep: /boot/config*: No such file or directory 2009-02-19 12:06:58,314 INFO Found kernel: /boot/vmlinuz-2.6.27-11-server 2009-02-19 12:06:58,453 INFO Replacing config file /var/run/grub/menu.lst with new version 2009-02-19 12:06:58,500 INFO Updating /boot/grub/menu.lst ... done 2009-02-19 12:06:58,500 INFO 2009-02-19 12:06:59,542 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:07:00,003 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:07:00,243 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:07:03,056 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:07:03,056 INFO Creating SSH2 RSA key; this may take some time ... 2009-02-19 12:07:03,056 INFO Creating SSH2 DSA key; this may take some time ... 2009-02-19 12:07:09,474 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:07:09,474 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:07:09,475 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:07:09,475 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:07:09,475 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:07:09,476 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:07:09,476 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:07:09,477 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:07:09,477 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:07:09,477 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:07:09,478 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:07:09,478 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:07:09,478 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:07:09,479 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:07:09,479 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:07:09,480 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:07:09,480 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:07:09,480 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:07:09,481 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:07:09,481 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:07:09,481 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:07:09,482 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:07:09,482 INFO find: `/var/cache/fontconfig': No such file or directory 2009-02-19 12:07:09,482 INFO find: `/var/cache/fonts': No such file or directory 2009-02-19 12:07:09,483 INFO find: `/var/cache/anthy': No such file or directory 2009-02-19 12:07:09,483 INFO find: `/var/lib/belocs': No such file or directory 2009-02-19 12:07:09,483 INFO find: `/var/lib/gconf': No such file or directory 2009-02-19 12:07:09,484 INFO find: `/var/lib/defoma': No such file or directory 2009-02-19 12:07:09,484 INFO find: `/var/log/installer': No such file or directory 2009-02-19 12:07:09,484 INFO find: `/cdrom': No such file or directory 2009-02-19 12:07:09,484 INFO find: `/media/cdrom': No such file or directory 2009-02-19 12:07:09,485 INFO find: `/usr/share/fonts': No such file or directory 2009-02-19 12:07:09,485 INFO find: `/var/lib/anthy': No such file or directory 2009-02-19 12:07:09,485 INFO find: `/var/lib/defoma': No such file or directory 2009-02-19 12:07:09,486 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:07:09,486 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:07:09,486 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:07:09,487 INFO Can not write log, openpty() failed (/dev/pts not mounted?) 2009-02-19 12:07:11,925 INFO Updating certificates in /etc/ssl/certs....done. 2009-02-19 12:07:11,925 INFO Running hooks in /etc/ca-certificates/update.d....done. 2009-02-19 12:07:12,528 INFO grep: /proc/self/status: No such file or directory 2009-02-19 12:07:13,063 INFO Use of uninitialized value $x in scalar assignment at /usr/share/perl/5.10/utf8_heavy.pl line 242. 2009-02-19 12:07:13,063 INFO Use of uninitialized value $x in pattern match (m//) at /usr/share/perl/5.10/utf8_heavy.pl line 243. 2009-02-19 12:07:13,064 INFO Use of uninitialized value $uni in pattern match (m//) at /usr/bin/ckbcomp line 3109. 2009-02-19 12:07:13,065 INFO Use of uninitialized value $uni in pattern match (m//) at /usr/bin/ckbcomp line 3109. 2009-02-19 12:07:13,220 INFO Use of uninitialized value $uni in pattern match (m//) at /usr/bin/ckbcomp line 3109. 2009-02-19 12:07:13,221 INFO Use of uninitialized value $uni in pattern match (m//) at /usr/bin/ckbcomp line 3109. 2009-02-19 12:07:13,308 INFO update-initramfs: deferring update (trigger activated) 2009-02-19 12:07:16,264 INFO Copying to disk images 2009-02-19 12:07:20,523 INFO Installing bootloader 2009-02-19 12:07:20,718 INFO Cleaning up Traceback (most recent call last): File "/usr/bin/vmbuilder", line 29, in VMBuilder.run() File "/usr/lib/python2.5/site-packages/VMBuilder/__init__.py", line 66, in run frontend.run() File "/usr/lib/python2.5/site-packages/VMBuilder/plugins/cli/__init__.py", line 67, in run vm.create() File "/usr/lib/python2.5/site-packages/VMBuilder/vm.py", line 441, in create self.install() File "/usr/lib/python2.5/site-packages/VMBuilder/vm.py", line 390, in install self.distro.install_bootloader() File "/usr/lib/python2.5/site-packages/VMBuilder/plugins/ubuntu/distro.py", line 129, in install_bootloader EOT''') File "/usr/lib/python2.5/site-packages/VMBuilder/util.py", line 106, in run_cmd proc = subprocess.Popen(args, stdin=stdin_arg, stderr=subprocess.PIPE, stdout=subprocess.PIPE, env=proc_env) File "/usr/lib/python2.5/subprocess.py", line 594, in __init__ errread, errwrite) File "/usr/lib/python2.5/subprocess.py", line 1153, in _execute_child raise child_exception OSError: [Errno 2] No such file or directory