Thanks for this additional information.
I checked the log again and I'm afraid the issues are caused by the
'deb http://ftp.de.debian.org/debian etch main'
line in your sources.list. This confuses the upgrader because some
packages in debian are newer version than ubuntu and some are not. You
may want to use the "origin" feature of synaptic to check what comes
from debian and downgrade/remove those to get it into upgradable shape
again. This is what caused the problems with update-rc.d you experienced
too.
We do not support mixed debian/ubuntu upgrades, sorry, I have to close
the report.
** Changed in: update-manager (Ubuntu)
Status: Incomplete => Invalid
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Running partial update on 7.10 fails with Cannot calculate the upgrade
https://bugs.launchpad.net/bugs/242088
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