ghostscript 9.05 fails with preview-latex and auctex

This is not the same as this bug: https://bugs.launchpad.net/ubuntu/+source/ghostscript/+bug/543266

The error in this bug is reported as:

    Error: /invalidfileaccess in --file--

It is the same as the bug mentioned here: http://email.esm.psu.edu/pipermail/macosx-emacs/2011-January/002566.html
and here: http://lists.gnu.org/archive/html/bug-auctex/2010-10/msg00016.html

I was able to fix this by downgrading to ghostscript 8.70. Note that 8.71 has a different bug in it that produces an error that says

    Error /undefined in copy_trailer_attrs

(as reported here: https://savannah.gnu.org/bugs/?29023)

To answer the required questions:

1) Description: Ubuntu 12.04 LTS
      Release: 12.04

2) ghostscript:
       Installed: 9.05~dfsg-0ubuntu4
       Candidate: 9.05~dfsg-0ubuntu4
       Version table:
     *** 9.05~dfsg-0ubuntu4 0
                 500 http://us.archive.ubuntu.com/ubuntu/ precise/main amd64 Packages
                 100 /var/lib/dpkg/status

  auctex/ preview-latex:
      Installed: 11.86-2ubuntu1
      Candidate: 11.86-2ubuntu1
      Version table:
     *** 11.86-2ubuntu1 0
            500 http://us.archive.ubuntu.com/ubuntu/ precise/main amd64 Packages
            100 /var/lib/dpkg/status

3) In emacs pressing 'C-c C-c C-p' inside of an equation environment should produce a preview of the equation. I

4) Instead a red circle/ error symbol is shown. Button-2 clicking the error yields the following error message

gs -dOutputFile\=\(_region_.prv/tmp30703Qa0/pr1-1.png\) -q -dSAFER -dNOPAUSE -DNOPLATFONTS -dPrinted -dTextAlphaBits\=4 -dGraphicsAlphaBits\=4 -sDEVICE\=png16m -r119.953x119.811
GS>{DELAYSAFER{.setsafe}if}stopped pop/.preview-BP currentpagedevice/BeginPage get dup null eq{pop{pop}bind}if def<</BeginPage{currentpagedevice/PageSize get dup 0 get 1 ne exch 1 get 1 ne or{.preview-BP 0.246098 0.246098 0.246098 setrgbcolor clippath fill 0.859388 0.859388 0.796887 setrgbcolor}{pop}ifelse}bind/PageSize[1 1]>>setpagedevice/preview-do{[count 3 roll save]3 1 roll dup length 0 eq{pop}{setpagedevice}{ifelse .runandhide}stopped{handleerror quit}if aload pop restore}bind def [(_region_.prv/tmp30703Qa0/preview.ps)(r)file]aload exch dup 0 setfileposition 101518()/SubFileDecode filter cvx .runandhide aload pop dup dup 101518 setfileposition 577()/SubFileDecode filter cvx<<>>preview-do
Error: /invalidfileaccess in --file--
Operand stack:
   --nostringval-- (_region_.prv/tmp30703Qa0/preview.ps) (r)
Execution stack:
   %interp_exit .runexec2 --nostringval-- --nostringval-- --nostringval-- 2 %stopped_push --nostringval-- --nostringval-- %loop_continue --nostringval-- --nostringval-- false 1 %stopped_push .runexec2 --nostringval-- --nostringval-- --nostringval-- 2 %stopped_push --nostringval--
Dictionary stack:
   --dict:1167/1684(ro)(G)-- --dict:0/20(G)-- --dict:79/200(L)--
Current allocation mode is local
Last OS error: 2
Current file position is 533
GS<3>