While there's still some work to be done on this (e.g. dpkg-divert or
override initctl to prevent upstart daemons from starting when
LTSP_HANDLE_DAEMONS="false"), a fix was committed in
http://bazaar.launchpad.net/~ltsp-upstream/ltsp/ltsp-trunk/revision/1519

** Changed in: ltsp (Ubuntu)
       Status: In Progress => Fix Committed

** Changed in: ltsp (Ubuntu)
     Assignee: Jonathan Carter (jonathan) => Alkis Georgopoulos (alkisg)

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010-fat-client fails to squashfs the image because proc is still mounted
https://bugs.launchpad.net/bugs/504678
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