Scott, your diagnostic was right but you can't remove it from the
blacklist directly installed on your system because the updater of the
target release is downloaded when you start the upgrade. nvidia stuff
has been added to the blacklist a long time ago and removed in Intrepid
(this is the bug 249329). I don't know if it can be removed from Hardy.
For now, if you want to upgrade, you can switch to some vesa mode,
uninstall nvidia-glx, proceed with the upgrade, then reinstall the
driver.
I'm confirming this issue and marking as high because this can
potentially hit a lot of people.
** Changed in: update-manager (Ubuntu)
Importance: Undecided => High
Status: Incomplete => Triaged
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unresolvable" problem when upgrading from 7.10 to 8.04
https://bugs.launchpad.net/bugs/278285
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