I'm not posting for help, but more for anyone else who might come across this.
I believe I found a sort of bug, but more of a left over from the port from pluto or ubuntu versions.
after installing LMCE, the sources list for apt are replaced and contain a line pointing to the sources CD for Ubuntu Dapper 6.06.
as long as this line is active, it will prompt you to insert the dapper sources disc when using apt.
I am going to assume that this is an oversight and should be removed in a future fix. A work around is to simply comment out the line from the sources.list file, or remove the reference line completely.