apt-update with virtualmin not working

As I am new to debian/linux i thought virtualmin would be of great use configuring debian.

After some startup problems I was able to install virtualmin with install.sh

When i tried to run apt-get update i got the following error:

[code:1]
Get:3 http://software.virtualmin.com virtualmin-etch Release.gpg [191B]
Hit http://software.virtualmin.com virtualmin-etch Release
Ign http://software.virtualmin.com virtualmin-etch/main Packages/DiffIndex
Ign http://software.virtualmin.com virtualmin-etch/main Packages/DiffIndex
Ign http://software.virtualmin.com virtualmin-etch/main Packages/DiffIndex
Ign http://software.virtualmin.com virtualmin-etch/main Packages/DiffIndex
Get:4 http://software.virtualmin.com virtualmin-etch/main Packages [8390B]
Get:5 http://software.virtualmin.com virtualmin-etch/main Packages [8390B]
Get:6 http://software.virtualmin.com virtualmin-etch/main Packages [8390B]
99% [4 Packages bzip2 0] [Waiting for headers]bzip2: (stdin) is not a bzip2 file.
Err http://software.virtualmin.com virtualmin-etch/main Packages
Sub-process bzip2 returned an error code (2)
99% [5 Packages bzip2 0] [Waiting for headers]bzip2: (stdin) is not a bzip2 file.
Err http://software.virtualmin.com virtualmin-etch/main Packages
Sub-process bzip2 returned an error code (2)
99% [6 Packages bzip2 0] [Waiting for headers]bzip2: (stdin) is not a bzip2 file.
Err http://software.virtualmin.com virtualmin-etch/main Packages
Sub-process bzip2 returned an error code (2)
Get:7 http://software.virtualmin.com virtualmin-etch/main Packages [8390B]
99% [7 Packages bzip2 0]bzip2: (stdin) is not a bzip2 file.
Err http://software.virtualmin.com virtualmin-etch/main Packages
Sub-process bzip2 returned an error code (2)
Fetched 384B in 0s (441B/s)
Failed to fetch http://software.virtualmin.com/gpl/debian/dists/virtualmin-etch/main/binary-i386/Packages.bz2 Sub-process bzip2 returned an error code (2)
Failed to fetch http://software.virtualmin.com/gpl/debian/dists/virtualmin-etch/main/binary-i386/Packages.bz2 Sub-process bzip2 returned an error code (2)
Failed to fetch http://software.virtualmin.com/gpl/debian/dists/virtualmin-etch/main/binary-i386/Packages.bz2 Sub-process bzip2 returned an error code (2)
Failed to fetch http://software.virtualmin.com/gpl/debian/dists/virtualmin-etch/main/binary-i386/Packages.bz2 Sub-process bzip2 returned an error code (2)
Reading package lists… Done
E: Some index files failed to download, they have been ignored, or old ones used instead.
[/code:1]

Does anyone have any idea how to solve this? Already tried apt-get clean.

Thanks!