Found the cause of my problem.

Seems that ltsp-build-client will not work if /opt is a symlink.  In my case
/opt -> /usr/local/opt

Once I made /opt a directory, ltsp-build-client worked fine.

** Summary changed:

- ltsp-build-client fails on Ubuntu 8.10 when can't configure hal
+ ltsp-build-client fails on Ubuntu 8.10 when can't configure hal - cause by 
/opt symlink

** Summary changed:

- ltsp-build-client fails on Ubuntu 8.10 when can't configure hal - cause by 
/opt symlink
+ ltsp-build-client fails on Ubuntu 8.10 when can't configure hal - caused by 
/opt symlink

-- 
ltsp-build-client fails on Ubuntu 8.10 when can't configure hal - caused by 
/opt symlink
https://bugs.launchpad.net/bugs/300542
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