I had the same error upgrading 6.06 to 8.04 today Jan 18 2009.
E: Malformed 3rd word in the Status line
E: Error occurred while processing libc6 (UsePackage2)
E: Problem with MergeList /var/lib/dpkg/status
E: The package lists or status file could not be parsed or opened

(Status file opens ok when opened manually ..)

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a fatal error of dist-upgrade at Gutsy
https://bugs.launchpad.net/bugs/121267
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