rgdal package installation error

I am trying to install the rgdal package under Ubuntu 8.10 with have
gdal 1.7.2 installed. I get the following error:

On typing:

install.packages("rgdal")

Warning in install.packages("rgdal") :
  argument 'lib' is missing: using '/usr/local/lib/R/site-library'

<snip stuff that seems irrelevant>

checking for pj_init_plus in -lproj... yes
./proj_conf_test: error while loading shared libraries: libgdal.so.1:
cannot open shared object file: No such file or directory
./proj_conf_test: error while loading shared libraries: libgdal.so.1:
cannot open shared object file: No such file or directory
Package CPP flags: -I/usr/local/include
Package LIBS: -L/usr/local/lib -lgdal
configure: creating ./config.status
config.status: creating src/Makevars
** libs

<snip other g++ stuff>

installing to /usr/local/lib/R/site-library/rgdal/libs
** R
** inst
** preparing package for lazy loading
** help
*** installing help indices
** building package indices ...
** testing if installed package can be loaded
Error in dyn.load(file, DLLpath = DLLpath, ...) :
  unable to load shared library
'/usr/local/lib/R/site-library/rgdal/libs/rgdal.so':
  libgdal.so.1: cannot open shared object file: No such file or directory
ERROR: loading failed
* removing ?/usr/local/lib/R/site-library/rgdal?

The downloaded packages are in
    ?/tmp/RtmpQVVEl1/downloaded_packages?
Warning message:
In install.packages("rgdal") :
  installation of package 'rgdal' had non-zero exit status


I have tried uninstalling and reinstalling gdal (using sudo apt-get
install). I have also tried downloading the rgdal tar.gz file and
installing using R CMD INSTALL at the shell prompt. I still get the
same error message as above.

If anyone can help me, I would be very grateful.

Thank you,
Siva