*** This bug is a duplicate of bug 346386 ***
https://bugs.launchpad.net/bugs/346386
I have try the suggested approach with the following results
uccio33@uccio33-OptiPlex-GX280:~$ sudo rm /var/lib/apt/list/*
rm: cannot remove `/var/lib/apt/list/*': No such file or directory
uccio33@uccio33-OptiPlex-GX280:~$ sudo apt-get update
Ign http://mirror.aarnet.edu.au precise InRelease
Ign http://mirror.aarnet.edu.au precise-updates InRelease
Ign http://mirror.aarnet.edu.au precise-security InRelease
Get:1 http://mirror.aarnet.edu.au precise Release.gpg [198 B]
Get:2 http://mirror.aarnet.edu.au precise-updates Release.gpg [198 B]
Get:3 http://mirror.aarnet.edu.au precise-security Release.gpg [198 B]
Hit http://mirror.aarnet.edu.au precise Release
Get:4 http://mirror.aarnet.edu.au precise-updates Release [49.6 kB]
Ign http://mirror.aarnet.edu.au precise Release
Ign http://archive.canonical.com precise InRelease
Ign http://extras.ubuntu.com precise InRelease
Ign http://ppa.launchpad.net precise InRelease
Get:5 http://mirror.aarnet.edu.au precise-security Release [49.6 kB]
Get:6 http://archive.canonical.com precise Release.gpg [198 B]
Get:7 http://extras.ubuntu.com precise Release.gpg [72 B]
Get:8 http://ppa.launchpad.net precise Release.gpg [316 B]
Ign http://mirror.aarnet.edu.au precise/main Sources/DiffIndex
Ign http://mirror.aarnet.edu.au precise/restricted Sources/DiffIndex
Ign http://mirror.aarnet.edu.au precise/universe Sources/DiffIndex
Ign http://mirror.aarnet.edu.au precise/multiverse Sources/DiffIndex
Ign http://mirror.aarnet.edu.au precise/main i386 Packages/DiffIndex
Ign http://mirror.aarnet.edu.au precise/restricted i386 Packages/DiffIndex
Ign http://mirror.aarnet.edu.au precise/universe i386 Packages/DiffIndex
Ign http://mirror.aarnet.edu.au precise/multiverse i386 Packages/DiffIndex
Hit http://mirror.aarnet.edu.au precise/main TranslationIndex
Hit http://mirror.aarnet.edu.au precise/multiverse TranslationIndex
Hit http://mirror.aarnet.edu.au precise/restricted TranslationIndex
Hit http://mirror.aarnet.edu.au precise/universe TranslationIndex
Get:9 http://archive.canonical.com precise Release [7,078 B]
Hit http://extras.ubuntu.com precise Release
Err http://extras.ubuntu.com precise Release
Get:10 http://ppa.launchpad.net precise Release [11.9 kB]
Get:11 http://mirror.aarnet.edu.au precise-updates/main TranslationIndex [3,564
B]
Get:12 http://mirror.aarnet.edu.au precise-updates/multiverse TranslationIndex
[2,605 B]
Get:13 http://mirror.aarnet.edu.au precise-updates/restricted TranslationIndex
[2,461 B]
Get:14 http://mirror.aarnet.edu.au precise-updates/universe TranslationIndex
[2,850 B]
Get:15 http://archive.canonical.com precise/partner i386 Packages [8,289 B]
Get:16 http://mirror.aarnet.edu.au precise-security/main TranslationIndex [74
B]
Get:17 http://mirror.aarnet.edu.au precise-security/multiverse TranslationIndex
[71 B]
Get:18 http://mirror.aarnet.edu.au precise-security/restricted TranslationIndex
[72 B]
Get:19 http://mirror.aarnet.edu.au precise-security/universe TranslationIndex
[73 B]
Get:20 http://mirror.aarnet.edu.au precise/main Sources [934 kB]
Ign http://archive.canonical.com precise/partner TranslationIndex
Get:21 http://ppa.launchpad.net precise/main Sources [1,598 B]
Get:22 http://ppa.launchpad.net precise/main i386 Packages [3,848 B]
Ign http://ppa.launchpad.net precise/main TranslationIndex
Get:23 http://mirror.aarnet.edu.au precise/restricted Sources [5,470 B]
100% [20 Sources bzip2 0 B] [23 Sources 446 B/5,470 B 8%] [Waiting for
headers]bzip2: (stdin) is not a bzip2 file.
Hit http://mirror.aarnet.edu.au precise/universe Sources
Get:24 http://mirror.aarnet.edu.au precise/multiverse Sources [155 kB]
Get:25 http://mirror.aarnet.edu.au precise/main i386 Packages [1,274 kB]
50% [24 Sources bzip2 0 B] [25 Packages 5,900 B/1,274 kB 0%] [Waiting for
headebzip2: (stdin) is not a bzip2 file.
Ign http://archive.canonical.com precise/partner Translation-en_US
100% [25 Packages bzip2 0 B] [Waiting for headers] [Waiting for headers]
[Waitibzip2: (stdin) is not a bzip2 file.
Get:26 http://mirror.aarnet.edu.au precise/restricted i386 Packages [8,431 B]
Get:27 http://mirror.aarnet.edu.au precise/universe i386 Packages [4,796 kB]
35% [26 Packages bzip2 0 B] [27 Packages 5,904 B/4,796 kB 0%] [Waiting for
headbzip2: (stdin)