Failed to create virtual server : setquota: Quota file not found or has wrong format.

Tried to create a virtual server which resulted in:

Creating administration group redmine ..
.. done
Creating administration user redmine ..
.. done

Failed to create virtual server : setquota: Quota file not found or has wrong format. setquota: Not all specified mountpoints are using quota.

Tried to check for the quotafile and got this:

root@heaven:~# quotacheck -avugm
quotacheck: Scanning /dev/sdb1 [/] quotacheck: lstat Cannot stat `//home/nitin/.gvfs': Permission denied
Guess you'd better run fsck first !
exiting...

Resolved on Ubuntu 10.04

/etc/init.d/gdm stop

Go to tty1 and from there:

quotaoff -a && quotacheck -avugm && quotaon -a

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