Ok, just finished testing it.  I got the prompt you were referring too,
and chose "start a new shell to examine the situation".  It seemed to
work fine here.  Brought up a new terminal window logged in as root
under the root directory.  Tested on an upgrade from maverick to natty.

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https://bugs.launchpad.net/bugs/768614

Title:
  No terminal, and no DISPLAY set, can't fork shell.

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