You seem to be running TKLPatch on Ubuntu Lucid, trying to patch an Ubuntu Hardy based appliance. This doesn't work because the Lucid squashfs where the appliance's root filesystem is stored is incompatible with the Hardy squashfs.
I recommend you do your TKLPatching inside a compatible TurnKey Core VM.
If you're patching one of the existing appliances, you'll want to run tklpatch inside the released TurnKey Core (based on Hardy). If you're patching the Lucid TurnKey Core Beta you'll need to run tklpatch inside Lucid TurnKey Core Beta.
You'll need to run TKLPatch inside a compatible distribution
I recommend you do your TKLPatching inside a compatible TurnKey Core VM.
If you're patching one of the existing appliances, you'll want to run tklpatch inside the released TurnKey Core (based on Hardy). If you're patching the Lucid TurnKey Core Beta you'll need to run tklpatch inside Lucid TurnKey Core Beta.