[Droid Incredible Android Development] Panda Fuzz:
If you encounter the issue in the subject, logcat will produce this message:

I/ActivityManager( 617): Start proc com.android.defcontainer for service com.android.defcontainer/.DefaultContainerServ
ice: pid=1056 uid=10039 gids={1015, 2001}
W/zipro ( 1056): Unable to open zip '/data/data/com.keramidas.TitaniumBackup/files/install.apk': Permission denied
D/asset ( 1056): failed to open Zip archive '/data/data/com.keramidas.TitaniumBackup/files/install.apk'
W/PackageParser( 1056): Unable to read AndroidManifest.xml of /data/data/com.keramidas.TitaniumBackup/files/install.apk
W/PackageParser( 1056): java.io.FileNotFoundException: AndroidManifest.xml
W/PackageParser( 1056): at android.content.res.AssetManager.openXmlAssetNative(Native Method)
W/PackageParser( 1056): at android.content.res.AssetManager.openXmlBlockAsset(AssetManager.java:485)
W/PackageParser( 1056): at android.content.res.AssetManager.openXmlResourceParser(AssetManager.java:453)
W/PackageParser( 1056): at android.content.pm.PackageParser.parsePackageLite(PackageParser.java:596)
W/PackageParser( 1056): at com.android.defcontainer.DefaultContainerService$1.getMinimalPackageInfo(DefaultContainerService.java:126)
W/PackageParser( 1056): at com.android.internal.app.IMediaContainerService$Stub.onTransact(IMediaContainerService.java:100)
W/PackageParser( 1056): at android.os.Binder.execTransact(Binder.java:288)
W/PackageParser( 1056): at dalvik.system.NativeStart.run(Native Method)
W/dalvikvm( 617): threadid=11: thread exiting with uncaught exception (group=0x4001d7e0)
E/AndroidRuntime( 617): *** FATAL EXCEPTION IN SYSTEM PROCESS: PackageManager
E/AndroidRuntime( 617): java.lang.NullPointerException
E/AndroidRuntime( 617): at android.os.Parcel.readException(Parcel.java:1266)
E/AndroidRuntime( 617): at android.os.Parcel.readException(Parcel.java:1248)
E/AndroidRuntime( 617): at com.android.internal.app.IMediaContainerService$Stub$Proxy.getMinimalPackageInfo(IMediaContainerService.java:220)
E/AndroidRuntime( 617): at com.android.server.PackageManagerService$InstallParams.handleStartCopy(PackageManagerService.java:4921)
E/AndroidRuntime( 617): at com.android.server.PackageManagerService$HandlerParams.startCopy(PackageManagerService.java:4815)
E/AndroidRuntime( 617): at com.android.server.PackageManagerService$PackageHandler.doHandleMessage(PackageManagerService.java:470)
E/AndroidRuntime( 617): at com.android.server.PackageManagerService$PackageHandler.handleMessage(PackageManagerService.java:415)
E/AndroidRuntime( 617): at android.os.Handler.dispatchMessage(Handler.java:99)
E/AndroidRuntime( 617): at android.os.Looper.loop(Looper.java:123)
E/AndroidRuntime( 617): at android.os.HandlerThread.run(HandlerThread.java:60)
I/Process ( 617): Sending signal. PID: 617 SIG: 9
I/Zygote ( 612): Exit zygote because system server (617) has terminated
E/installd( 101): eof
E/installd( 101): failed to read size
I/installd( 101): closing connection
I/ServiceManager( 93): service 'media.audio_flinger' died
I/ServiceManager( 93): service 'media.player' died
I/ServiceManager( 93): service 'media.camera' died
I/ServiceManager( 93): service 'media.audio_policy' died
I/ServiceManager( 93): service 'iphonesubinfo' died
I/ServiceManager( 93): service 'isms' died
I/ServiceManager( 93): service 'simphonebook' died
I/ServiceManager( 93): service 'phone' died
I/ServiceManager( 93): service 'SurfaceFlinger' died
I/ServiceManager( 93): service 'package' died
I/ServiceManager( 93): service 'batteryinfo' died
I/ServiceManager( 93): service 'entropy' died
I/ServiceManager( 93): service 'power' died
I/ServiceManager( 93): service 'netstat' died
I/ServiceManager( 93): service 'content' died
I/ServiceManager( 93): service 'throttle' died
I/ServiceManager( 93): service 'account' died
I/ServiceManager( 93): service 'cpuinfo' died
I/ServiceManager( 93): service 'permission' died
I/ServiceManager( 93): service 'accessibility' died
I/ServiceManager( 93): service 'telephony.registry' died
I/ServiceManager( 93): service 'devicestoragemonitor' died
I/ServiceManager( 93): service 'statusbar' died
I/ServiceManager( 93): service 'usagestats' died
I/ServiceManager( 93): service 'activity' died
I/ServiceManager( 93): service 'wifi' died
I/ServiceManager( 93): service 'clipboard' died
I/ServiceManager( 93): service 'network_management' died
I/ServiceManager( 93): service 'notification' died
I/ServiceManager( 93): service 'location' died
I/ServiceManager( 93): service 'meminfo' died
I/ServiceManager( 93): service 'input_method' died
I/ServiceManager( 93): service 'uimode' died
I/ServiceManager( 93): service 'audio' died
I/ServiceManager( 93): service 'search' died
I/ServiceManager( 93): service 'wallpaper' died
I/ServiceManager( 93): service 'dropbox' died
I/ServiceManager( 93): service 'mount' died
I/ServiceManager( 93): service 'battery' died
I/ServiceManager( 93): service 'hardware' died
I/ServiceManager( 93): service 'vibrator' died
I/ServiceManager( 93): service 'alarm' died
I/ServiceManager( 93): service 'sensor' died
I/ServiceManager( 93): service 'connectivity' died
I/ServiceManager( 93): service 'diskstats' died
I/ServiceManager( 93): service 'window' died
I/ServiceManager( 93): service 'bluetooth' died
I/ServiceManager( 93): service 'bluetooth_a2dp' died
I/ServiceManager( 93): service 'device_policy' died
I/ServiceManager( 93): service 'bluetooth_hid' died
I/ServiceManager( 93): service 'backup' died
I/ServiceManager( 93): service 'appwidget' died

The easiest fix is running this from su in adb shell:

chmod 777 /data/data/com.keramidas.TitaniumBackup/files/install.apk