Hello, I fiddled around for a bit on ubuntu 9.04 the install script runs perfect however after setting the screensaver it didn't work. I have found that the electricsheep.desktop file located in /usr/share/applications/screensavers needs to be edited as so:

[Desktop Entry]
Encoding=UTF-8
Name=ElectricSheep
Comment=Electric Sheep is a distributed screen-saver that harnesses idle comput$
TryExec=electricsheep
Exec=electricsheep --video-driver xv --root 0
StartupNotify=false
Terminal=false
Type=Application
Categories=Screensaver;

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so essnetially, run makesheep.sh, and edit that file.. not sure if this has been posted, but hope it helps