Well, here's the guts of the problem:

Jan 25 23:18:06 user-setup: The home directory `/home/jessie' already exists. 
Not copying from `/etc/skel'.
Jan 25 16:18:06 chfn[5843]: changed user `jessie' information
Jan 25 23:18:06 finish-install: cat: can't open '/dev/shm/.ecryptfs-jessie': No 
such file or directory
Jan 25 23:18:06 finish-install: warning: /usr/lib/finish-install.d/06user-setup 
returned error code 1

You apparently selected encrypted-home. Is it possible that /home/jessie
already existed? (That isn't *wrong*, but it's something that I don't
think the current encrypted-home implementation can account for.)

** Changed in: user-setup (Ubuntu)
       Status: Incomplete => Confirmed

** Summary changed:

- Alternate Jaunty Alpha 3 CD doesn't automatically add user to sudoers
+ user-setup-apply breaks if home directory already exists and encrypted-home 
selected (?)

-- 
user-setup-apply breaks if home directory already exists and encrypted-home 
selected (?)
https://bugs.launchpad.net/bugs/321345
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