To duplicate:

1) Set BIOS/RTC time to sometime long before the release (e.g. Midnight, Jan 1, 
2000).
2) Boot from Gusty Gibbon (alpha-5) Desktop/i386 install CD.
3) Select "start or install Ubuntu"
4) When told the RTC isn't set, choose to set the RTC. 
5) Symptoms as described above should present.

Tested on an AMD Athlon @ 1000MHz with 1GB DDR RAM; Asus A7N266-VM
motherboard.

-- 
Installer: insufficient privileges to set the clock when clock not set.
https://bugs.launchpad.net/bugs/135688
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