I resolved it by copying the specified /proc directories to monitor from this link and uncommenting /proc:
http://www.faqs.org/docs/securing/chap17sec139.html
append to under the section:
#/proc -> $(Device) ;
/proc/sys -> $(Device) ;
/proc/cpuinfo -> $(Device) ;
/proc/modules -> $(Device) ;
..........
}
Make sure to comment out these 2 directories on the template as they don't exist on Ubuntu 10.04 according to tripwire:
#/proc/ide
#/proc/ksyms
===============================================================================
Error Report:
===============================================================================
No Errors
-------------------------------------------------------------------------------
*** End of report ***