Comment 13 for bug 430224

This is a problem for builders/testers, not just people using virtual machines.

Making it harder to customize/test ubuntu will reduce quality going forward.

I build a customized LiveCD for a research group at Caltech, which is also made available to similar groups at other universities.

Package installation into a chroot'ed copy of a distribution is required by both customization methodologies described in the ubuntu wiki. The two methodologies are 'by scratch' starting with debootstrap and then chrooting; or 'from an existing distribution' which copies and unpacks the squashfs in the standard LiveCD and then one chroots into that. The chroot allows upgrading and interacting with the system in a familiar and straightforward way, using, for example, apt-get to fetch new packages or dpkg-reconfigure to change a configuration.

Not only will this issue affect tinkerers and customisation builders, I would think Ubuntu's internal testers might need to do similar things when building/testing future distributions.