[sudo apt-get update]

I am a Linux noob and have been fighting with these issues for the last few days.  Finally, on the 5th install of the software I was able to get it working.  Here were the steps I followed:

I used a combination of the following sources:

http://wiki.linuxmce.org/index.php/Installing_0810
http://linuxmce.iptp.org/snapshots/LinuxMCE-8.10-23388-i386.iso
This thread
Trial & Error

1.  Download and burn the latest 3.8GB .iso from snapshots site.
2.  Boot w/ the DVD and choose the last option: Install LinuxMCE
3.  Once in Kubuntu, replace the /etc/apt/sources.list file with the one posted by attunezero.
4.  Run the update commands: sudo apt-get update and sudo apt-get dist-upgrade
4.  Download the following command to get new-installer file: wget -c http://deb.linuxmce.org/ubuntu/new-installer-latest.tar.gz
5.  Run this command to unpack it: tar xvf new-installer-latest.tar.gz
6.  Run: cd new-installer
7.  Run the following commands IN ORDER:
./pre-install-from-repo.sh
./mce-install.sh
./post-install.sh

After a reboot, you should get the A/V Wizard.

Good Luck all!!