SOLVED! Here is what worked for me:
Original Problem: I am updating FOG 1.1.1 to 1.2.0 and when it got to the part of the installation where the installer
Setting up and Installing Apache Web Server... failed
I fixed this by updateing Ubuntu to 12.04 and running:
apt-get install libapache2-mod-php5
That got me past the Apache initialization.
The next issue I had was the Database Schema Installer failed and threw HUNDREDS of errors at me. this was fixed by reseting the mySQL password. I found instructions to do so here: http://www.rackspace.com/knowledge_center/article/mysql-resetting-a-lost-mysql-root-password