It almost looks as though the ubuntu-desktop meta package wasn't
installed before you did your upgrade...
What kind of error message do you get if you try 'sudo apt-get install
ubuntu-desktop' ?
** Changed in: update-manager (Ubuntu)
Status: New => Incomplete
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Attempted upgrade to 8.04 fails, then all upgrades fail
https://bugs.launchpad.net/bugs/230591
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