I had exactly same problem as Griphonwin: data directory definition was missing 
from postgresql.conf,
in a brand new Jaunty installation (100% sure there was nothing from any 
earlier installation).
Adding the data_directory line fixed the problem.

-- 
package postgresql-8.3 8.3.3-0ubuntu0.8.04 failed to install/upgrade: 
underproces post-installation script returned 1
https://bugs.launchpad.net/bugs/241553
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