I just ran into the same problem on my regular machine:
Setting up squid-common (2.7.STABLE7-1ubuntu12) ...^M
^M
Setting up squid (2.7.STABLE7-1ubuntu12) ...^M
Installing new version of config file /etc/resolvconf/update-libc.d/squid ...^M
restart: Job failed to restart^M
dpkg: error processing squid (--configure):^M
subprocess installed post-installation script returned error exit status 1^M
and it was running before.
** Changed in: squid (Ubuntu)
Status: Incomplete => Confirmed
** Also affects: squid (Ubuntu Lucid)
Importance: Medium
Status: Confirmed
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package squid 2.7.STABLE7-1ubuntu12 failed to install/upgrade: subprocess
installed post-installation script returned error exit status 1
https://bugs.launchpad.net/bugs/565022
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