I'm having this same issue, except uninstalling xserver-xorg-video-nouveau 
didn't help...
I attach the /var/log/dist-upgrade/ logs

Any ideas?

** Attachment added: "log files"
   
https://bugs.launchpad.net/ubuntu/+source/xorg-server/+bug/614993/+attachment/1878614/+files/20110301-0839.tar.gz

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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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