I've reproduced the missing locale issue with the version of ubuntu-vm-builder in hardy-updates, 0.4-0ubuntu0.1, and can confirm that the version in hardy-proposed, 0.4-0ubuntu0.4, properly sets up locale and timezone settings.
I've reproduced the missing locale issue with the version of ubuntu-vm-builder in hardy-updates, 0.4-0ubuntu0.1, and can confirm that the version in hardy-proposed, 0.4-0ubuntu0.4, properly sets up locale and timezone settings.