Going back to the original problem, I am running on the latest server of Kubuntu (as of 19/9/2011) and am trying to do FOG. I make it through everything, but as mentioned, Apache2 fails. I can't do sudo apt-get install either, this is the error message I get:
sudo apt-get install firefox //as a test\\
Reading package lists... Error!
E: Encountered a section with no Package: header
E: Problem with MergeList /var/lib/apt/lists.us.archive.ubuntu.com_ubuntu_dists_natty_mai n_binary-i386_Packages
E: The package lists or status file could not be parsed or opened.
I had the same problem. I resolved it by using a non proxyed internet connection.
Sudo apt-get doesnt work if the server is sitting behind a internet proxy server.
Hope this helps.
apt-get works if you tell it about the proxy. We're behind embc so /etc/apt/apt.conf contains this (only) -