For some reason, it's looking in / for texmf.cnf, along with a bunch of other things. I think it's got one of its prefixes wrong.
** Changed in: tetex-bin (Ubuntu)
Importance: Untriaged => Medium
Status: Needs Info => Confirmed
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latex, gv very slow, kpathsea related problem
https://launchpad.net/bugs/57589
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