There apparently were some leftovers from a previous dhcp3-server installation.
The error in the logs is:
/etc/default/dhcp3-server: 1: auto: not found
Apparently something was set in the old /etc/default/dhcp3-server that prevents
successful install/startup. Could you attach your /etc/default/dhcp3-server
file ?
Purging existing config files and reinstalling should fix the issue:
$ sudo apt-get purge dhcp3-server
$ sudo apt-get install dhcp3-server
** Changed in: dhcp3 (Ubuntu)
Status: New => Incomplete
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package dhcp3-server 3.1.1-1ubuntu2 failed to install/upgrade: subprocess
post-installation script returned error exit status 127
https://bugs.launchpad.net/bugs/363060
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