In 5.3 run the installer on a fresh system and you get the message Installer prints "chown: `root:apache` : invalid group" Not sure what it's trying to chown, but apache hasn't been installed yet, so that group wouldn't exist.
Note, i was using iso Satellite-5.3.0-RHEL5-re20080919.1-i386-embedded-oracle.iso
Fixed in git revision bd321d5fa17cc3794eba3c56ff065acb12329124 and svn revision 177262. Removed the permissions setting. Instead updated the proxy packages to use the correct permissions for /var/log/rhn. About 4 packages claim ownership to the dir and suspect these were setting it wrong. Turns out they're not supposed to be getting installed on a satellite anyhow so hopefully directory permissions will be healthily set by the spacewalk-backend rpms. Waiting for next respin to mark on_qa.
Installer does not print this message upon the installation of the re20081128.0-i386 ISO. Moving to VERIFIED.
An advisory has been issued which should help the problem described in this bug report. This report is therefore being closed with a resolution of ERRATA. For more information on therefore solution and/or where to find the updated files, please follow the link below. You may reopen this bug report if the solution does not work for you. http://rhn.redhat.com/errata/RHEA-2009-1434.html