This is because tor is starting as a "system service".

$ ls -l /etc/rc2.d/S20tor
lrwxrwxrwx 1 root root 13 May 23  2009 /etc/rc2.d/S20tor -> ../init.d/tor

When you run Vidalia, tor needs to run tor under your user account.
Vidalia tries to start tor but can't, because it's already running. So
you need to stop tor before running Vidalia:

$ sudo /etc/init.d/tor stop

If you don't have the need to run tor at system start up (because you
always use Vidalia for example), edit /etc/default/tor and set
RUN_DAEMON to "no".

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https://bugs.launchpad.net/bugs/680192

Title:
  Vidalia was unable to start Tor. Check your settings to ensure the correct 
name and location of your Tor executable is specified.

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