This is what worked for me thanks to folks (behda) on the Ubuntu forums.
I did not lose any data and it worked just fine.

1 start PC and let it load to X login screen (after getting X setup popup and 
choosing continue)
2 do a ctrl+alt+F1 and get to terminal and login.
3 sudo rm /usr/bin/localedef
4 sudo dpkg --configure -a
5 let upgrade finish and when back to the prompt "reboot"

-- 
Gutsy->Hardy upgrade hangs in localedef
https://bugs.launchpad.net/bugs/249340
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