Have you tried AE 1.6.7 from
http://forum.caravelgames.com/downloads.php ? That may work better.
As for 1.6.6, the problem is with the install.sh file:
01 #!/bin/sh
02 # DROD install script, by Gerry JJ <trick@icculus.org>
...
15 # Libraries
16 LIBS=(dummy libgcc_s.so.1 libstdc++.so.5 libfmod-3.73.so libexpat.so.0 \
libfreetype.so.6 libSDL_ttf-2.0.so.0 libSDL-1.2.so.0)
The syntax on line 16 isn't valid 'sh' syntax. On distros where 'sh' is mapped to 'bash', it works fine. But the default for Ubuntu is 'dash', which keeps to the 'sh' syntax more closely:
sh
$ TEST=(a b c)
sh: 1: Syntax error: "(" unexpected
dash
$ TEST=(a b c)
dash: 1: Syntax error: "(" unexpected
bash
$ TEST=(a b c)
$
So your options if you want to install 1.6.6 are probably to either change what 'sh' refers to temporarily, to edit install.sh (and any other shell scripts) to replace the first line with /bin/bash explicitly, or to edit the scripts and make them actually sh-compatible.