Before entering nekoware perl CPAN shell, try to do this first:
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chkconfig vswap on
This seems to work on my ChallengeS, at least installing a new CPAN. Khalid, can you test this?
 before this, i added extra swap via a swap file, but that didn't help, Maybe the combination of vswap and adding extra swap did the trick. In order to test vswap without extra swap, i have to let CPAN go its course, which takes a rather long time.