I recently got this error, usually may happen after a Heroku toolbelt setup
E: Encountered a section with no Package: header E: Problem with MergeList /var/lib/apt/lists/archive.ubuntu.com_ubuntu_dists_natty_main_binary-i386_Packages E: The package lists or status file could not be parsed or opened.
you wont be able to update through terminal too
Open Terminal and issue this command
sudo rm -vf /var/lib/apt/lists/*
Generate a new list by doing a update
sudo apt-get update
Happy Hacking 🙂