This bug was fixed in the package eucalyptus - 1.6.2~bzr1113-0ubuntu1

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eucalyptus (1.6.2~bzr1113-0ubuntu1) lucid; urgency=low

  * Merge from upstream 1.6.2 tree, fixes LP: #498379
  * debian/eucalyptus-common.postinst: Apply the setuid bit not just on new
    installs, so that it's not lost on upgrades (LP: #499480)
 -- Thierry Carrez <[email protected]>   Tue, 22 Dec 2009 15:40:21 +0100

** Changed in: eucalyptus (Ubuntu)
       Status: New => Fix Released

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ModifyImageAttribute does not correctly remove group perms
https://bugs.launchpad.net/bugs/498379
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