Tested with daily iso 20100223.2 and there are still problems.
The ValueError is removed, now /var/log/oem-config.log just contains "Ubiquity 
2.1.27 (oem-config)" six times. The result is still the same though. X does not 
start and there is no dialog for entering username. 

The startup sequence stops when running oem-config-firstboot still, but now it 
reports:
/usr/sbin/oem-config-firstboot: line 54:   785 Segementation fault    
LANG=en_US.UTF-8 /usr/sbin/oem-config $DEBUG --only 2>> /var/log/oem-config.log


When running "sudo oem-config-firstboot" as the oem-user, 
/var/log/oem-config.log is filled with:
debconf: DbDriver "passwords" warning: could not open 
/var/cache/debconf/passwords.dat: Permission denied

-- 
oem-config-firstboot crashing upon run
https://bugs.launchpad.net/bugs/526405
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