On the hardy, I just checked and this solves the problem:
1. You have the belocs-locales-bin installed (deboostrap?)
2. You run update-local that will rebuild the file there as Nocolas said. So,
we can close this?
** Changed in: pam (Ubuntu)
Status: New => Fix Released
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pam_env can't open /etc/default/locale
https://bugs.launchpad.net/bugs/155794
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