Had this problem (reported as #718321).  As suggested here, removed 
xserver-xorg-video-nouveau.  Upgrade ran without problems.  Added ...-nouveau 
back after upgrade and system works fine.
Thanks for help.

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https://bugs.launchpad.net/bugs/614993

Title:
  10.04 -> 10.10 upgrade fails: pkgProblemResolver::Resolve generated
  breaks: xserver-xorg-video-v4l demoted to universe

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