I can also confirm the bug is alive and well in Lucid

DISTRIB_ID=Ubuntu
DISTRIB_RELEASE=10.04
DISTRIB_CODENAME=lucid
DISTRIB_DESCRIPTION="Ubuntu 10.04 LTS"

Linux 2.6.32-22-generic #36-Ubuntu SMP Thu Jun 3 22:02:19 UTC 2010 i686
GNU/Linux

cat /etc/default/rcS

#
# /etc/default/rcS
#
# Default settings for the scripts in /etc/rcS.d/
#
# For information about these variables see the rcS(5) manual page.
#
# This file belongs to the "initscripts" package.

TMPTIME=0
SULOGIN=no
DELAYLOGIN=no
UTC=no
VERBOSE=no
FSCKFIX=no


I resorted to the /etc/rc.local fix

-- 
TMPTIME=0 no longer clears /tmp on boot
https://bugs.launchpad.net/bugs/524196
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