I try to reproduce this issue in Karmic up to date and works fine for
me. Could you update your sources (or select another mirror)  and try to
reinstall openntpd package?

Regards

** Package changed: ubuntu => openntpd (Ubuntu)

-- 
openntpd no longer installs -/etc/openntpd/ntpd.conf: Permission denied
https://bugs.launchpad.net/bugs/458061
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