I have install cli with xubuntu 8.04. Same "error".
I ran 

$ sudo updatedb

and locate works. I have rebooted several times. I guess I have some
daemons to install :)

-- 
locate reports "locate: can not open `/var/lib/mlocate/mlocate.db': No such 
file or directory"
https://bugs.launchpad.net/bugs/204357
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