Get error message when running Diskless_CreateTbz.sh
rm: cannot remove directory `/tmp/tmp.cgnIp19168/lib/modules/2.6.27-16-generic/volatile': Device or resource busy
I receive this message (similar) on both my production and my test system after running the latest updates.
The resulting MD image does not contain kernel source which leads to the nvidia kernel driver not to be created.
trac #496 (closed) explains the symptoms "Failed to setup X"