Changing package to emacs-snapshot: emacs-snapshot includes its own version of tramp, rather than using the tramp package.
I am also experiencing this bug on feisty.
** Changed in: tramp (Ubuntu)
Sourcepackagename: tramp => emacs-snapshot
Importance: Undecided => Medium
Status: Unconfirmed => Confirmed
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[Feisty] Tramp doesn't work with emacs-snapshot
https://launchpad.net/bugs/94354
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