I think we can close this report. I tried to reproduce the error with the current upstream code and it is working without error.
I installed the provided init.d scripts (the ones with LSB headers) and then ran apt to install the ntp service. The process completed without any problems. I also tried running insserv manually on various scripts, including the two "local" scripts provided. It prints and warning, but otherwise handles the situation cleanly. So maybe this issue has been fixed already. Unless there is more information on how to get insserv to fail when there is no LSB header, I believe this issue can be closed. - Jesse
