I believe I have the same issue.
We have been deploying Ubuntu by pointing the Ubuntu mirror to an internal 
mirror with a preseed file. This has been working for us since Ubuntu 7.04. I 
use the same preseed file and just change the directory. Now it's trying to 
install from gb.archive.ubuntu.com. The d-i installer stops with the error:
Bad archive mirror. An error has been detected while trying to use the 
specified Ubuntu archive mirror.

my preseed file mirror section:
d-i     mirror/country                  string manual
d-i     mirror/http/hostname    string {our internal http server}
d-i     mirror/http/directory   string /ubuntu/1010-64
d-i     mirror/suite            string maverick
d-i     mirror/http/proxy               string

-- 
netinstall refuses to use local mirror
https://bugs.launchpad.net/bugs/659632
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