FTBFS is due to incompatible changes in cdbs Attached is a patch I am successfully using to build PPA packages in Ubuntu Karmic.
Max.
--- a/debian/rules Fri Apr 17 00:33:15 2009 +0100
+++ b/debian/rules Mon May 11 00:15:27 2009 +0100
@@ -66,3 +66,13 @@
@echo "Restore it from sources before building the package"
@echo "Aborting."
exit 1
+
+# Fairly arcane and slightly dodgy hack to make the build work with cdbs >= 0.4.53.
+# The problem is essentially that before, cdbs bound the 'setup.py install'
+# phase to common-install-{arch,indep}, but now it binds it to the install/%
+# target of one specific binary package... which is a bit of a nasty assumption
+# to make, and breaks us, since we split the installed python-stuff over two
+# binary packages. Hence, we make installation of our secondary binary package
+# depend on installation of the primary one on which cdbs actually hangs the
+# install commands:
+install/mercurial-common:: install/mercurial
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