Problem solved. 3.2.0-5 is the backported to Ocelot & Precise bugfix for the remote exploit. Version number confusion. See changelogs here https://launchpad.net/ubuntu/precise/+source/pidgin-otr/3.2.0-5ubuntu0.12.4.1and here https://launchpad.net/ubuntu/oneiric/+source/pidgin-otr/3.2.0-5ubuntu0.11.10.1.
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