karl, if the install had *actually* happened to an ntfs partition,
instead of to an ext4 partition, that would exactly explain the symptom
we're seeing here (since ntfs doesn't support suid executables).  If you
still have this install available, can you mount it and check what the
filesystem type is?  Can you also show the output of 'ls -l
/usr/bin/sudo' on the target partition, as requested above on the bug?

It's certainly possible there's a bug here that's preventing the
partition from being wiped even though you marked it for wiping; or the
issue could be something else entirely.

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https://bugs.launchpad.net/bugs/947738

Title:
  precise failed to install: unable to initialize policy plugin

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