This indeed look strange, and like a local modification.
Things should start working again if you do:
sudo rm /etc/rc2.d/S19postgresql-8.3
sudo cp /etc/rc3.d/S19postgresql-8.3 /etc/rc2.d/S19postgresql-8.3
** Changed in: postgresql-8.3 (Ubuntu)
Status: Incomplete => Invalid
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package postgresql-8.3 8.3.6-0ubuntu8.10 failed to install/upgrade: subprocess
post-installation script returned error exit status 102
https://bugs.launchpad.net/bugs/335115
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