The remote host is missing updates announced in advisory CLA-2005:972.
A race condition vulnerability in the file permission restore code of bunzip2 was discovered by Imran Ghory. While a user was decompressing a file, a local attacker with write permissions to the directory containing the uncompressed file could replace the target file with a hard link which would cause bunzip2 to restore the file permissions of the original file to the hard link target. This could be exploited to gain read or write access to files of other users.
A vulnerability was found where specially crafted bzip2 archives would cause an infinite loop in the decompressor, resulting in an indefinitively large output file (also known as a 'decompression bomb'). This could be exploited to cause a Denial of Service attack on the host computer due to disk space exhaustion.