Thanks for reporting this
Error log is refering a problem with python 2.5:

Installing new version of config file /etc/vmbuilder/libvirt/libvirtxml.tmpl ...
/usr/lib/python2.5/site-packages/VMBuilder/util.py:160: Warning: 'as' will 
become a reserved keyword in Python 2.6
Compiling /usr/lib/python2.5/site-packages/VMBuilder/util.py ...
  File "/usr/lib/python2.5/site-packages/VMBuilder/util.py", line 160
    except AttributeError as e:
                           ^
SyntaxError: invalid syntax

Can you try upgrading python to 2.7 version and retry?

** Changed in: vm-builder (Ubuntu)
       Status: New => Invalid

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https://bugs.launchpad.net/bugs/1245486

Title:
  package python-vm-builder 0.12.4+bzr488-0ubuntu1 failed to
  install/upgrade: ErrorMessage: subprocess installed post-installation
  script returned error exit status 1

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