Can't use the su method, since I don't really want to veer from the Ubuntu default too much. ssh is right out (for localhost? I ask you!).
It shows a "Waiting for prompts from remote shell". And that's it, apparently. Or is it just that incredibly slow?
Just upgrade tramp to 2.1.18 (if you are against emacs-23.1)
This will install new tramp to /usr/local/share/emacs
Emacs will find it automagically.
P.S. This operation needs texinfo and libgnome2-dev.