The permission check of openssh is relaxed in revision 1.88 of loginrec.c
http://anoncvs.mindrot.org/index.cgi/openssh/loginrec.c
Would be nice to see this as an update in Lucid becaue with permission mode 
0660 of /var/log/btmp I see no security concerns.

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https://bugs.launchpad.net/bugs/743858

Title:
  sshd not appending to /var/log/btmp

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