It sounds like the quota setup that normally occurs during installation didn’t “take” for some reason. Are you by chance using a VPS of some sort? Or maybe a non-standard filesystem?
What output do you see if you run the “mount” command"?
This is not running on a VPS. I just took a desktop computer and installed Ubuntu 10.04 Server Edition on it. I don’t think I am using a non standard filesystem.
Mount Command
/dev/sda1 on / type ext4 (rw,grpquota,errors=remount-ro,usrquota)
proc on /proc type proc (rw,noexec,nosuid,nodev)
none on /sys type sysfs (rw,noexec,nosuid,nodev)
none on /sys/fs/fuse/connections type fusectl (rw)
none on /sys/kernel/debug type debugfs (rw)
none on /sys/kernel/security type securityfs (rw)
none on /dev type devtmpfs (rw,mode=0755)
none on /dev/pts type devpts (rw,noexec,nosuid,gid=5,mode=0620)
none on /dev/shm type tmpfs (rw,nosuid,nodev)
none on /var/run type tmpfs (rw,nosuid,mode=0755)
none on /var/lock type tmpfs (rw,noexec,nosuid,nodev)
none on /lib/init/rw type tmpfs (rw,nosuid,mode=0755)
gvfs-fuse-daemon on /home/clone1018/.gvfs type fuse.gvfs-fuse-daemon (rw,nosuid,nodev,user=clone1018)
binfmt_misc on /proc/sys/fs/binfmt_misc type binfmt_misc (rw,noexec,nosuid,nodev)
Its also worth mentioning I did this yesterday and got the same error. I restarted and then it worked perfectly. It doesn’t do the same now. Go figure.