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Try following the instructions at https://docs.docker.com/installation/ubuntulinux/, you might have installed an older conflicting package named docker.
The Docker image was working flawlessly for me so there must be some tiny niggle.
I mean, if you use a VM you shouldn't need to fear installing a new version of Docker. I'm using Ubuntu 14.10 64bit and I've never seen anything close to the issues you're seeing. It's quite possible they've fixed these issues with newer versions, as I was reading about stale data historically.
Try removing all chuckdemos images though, since I know that the dangling filter will leave tagged images behind.
I also made sure to install Docker 1.4 myself due to it having a feature I needed, but I can't recall which now. So please just try the latest version. If you run it in a VM you'll also get rid of any bad state as a bonus.