Ubuntu: APT-GET not working on New Install.

On a fresh install I try to update and upgrade the server and get the following error:

Failed to fetch bzip2:/var/lib/apt/lists/partial/


apt-get clean
rm -rf /var/lib/apt/lists/*
rm -rf /var/lib/apt/lists/partial/*
apt-get clean
apt-get update
apt-get upgrade

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