I found Tor works with privoxy but not the recommended polipo on Ubuntu 9.10. To run tor first add the following to /etc/apt/sources.list:
deb http://deb.torproject.org/torproject.org [distribution] main
Now install Tor and the proxy server with:
Now set 127.0.0.1:8118 as proxy (eg in firefox) to access the Tor network.