The log output says it all:

2012-10-04 19:47:47 GMT FATAL:  data directory "/var/lib/postgresql/9.1/main" 
has group or world access
2012-10-04 19:47:47 GMT DETAIL:  Permissions should be u=rwx (0700).


** Changed in: postgresql-9.1 (Ubuntu)
       Status: Confirmed => Invalid

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https://bugs.launchpad.net/bugs/1061851

Title:
  package postgresql-9.1 9.1.6-0ubuntu12.04 failed to install/upgrade:
  subprocess installed post-installation script returned error exit
  status 1

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