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I presume that you are seeing this error in the web ui?
This was a suggestion from ubuntu's forums:
Fix for Ubuntu Server 12.04 LTS:
We must change the group ownership of the /usr/local/nagios/var/rw/ directory. First stop the Nagios service and then change the group ownership and start Nagios service again:
geekpeeknet@foo1:~$ sudo chown -R nagios:www-data /usr/local/nagios/var/rw/
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