Are you building this in virtualbox/vmware or on an actual 32bit system?

on actual machine, no virtualization.

Another question is - how much memory do you have in your system?

I'm able to replicate the issue here on a 32bit machine with 4GB of ram (virtual machine) - it has to do with the fact that pixz will attempt to read the entire file into memory, and this fails.

you can see this via strace, if you run "strace pixz kali-1.0.7-rpi.img kali-1.0.7-rpi.img.xz" and it will end with..

open("kali-1.0.7-rpi.img", O_RDONLY) = -1 EOVERFLOW (Value too large for defined data type)
write(2, "Can't open input file", 21Can't open input file) = 21

So, basically, there's not enough memory on x86 systems to read the entire file into memory in order to compress it.

The easy fix for you, is to comment out the line that that deletes the image file.

ahh, understood.
bo basically I have to remove these lines and Im good to go?

echo "Compressing kali-$1-rpi.img"
pixz ${basedir}/kali-$1-rpi.img ${basedir}/kali-$1-rpi.img.xz
rm ${basedir}/kali-$1-rpi.img
echo "Generating sha1sum for kali-$1-rpi.img.xz"
sha1sum kali-$1-rpi.img.xz > ${basedir}/kali-$1-rpi.img.xz.sha1sum

That is correct.

It isn't letting me modify the bug, so resolving as a dupe to the new bug.