Likewise, this affects me too, karmic->lucid beta on a virtual machine, 
/etc/fstab:
proc            /proc           proc    defaults        0       0
/dev/xvda       /               ext3    noatime,errors=remount-ro 0       1
/dev/xvdb       none            swap    sw              0       0

# mountall
swapon: /dev/xvdb: swapon failed: Device or resource busy
mountall: swapon /dev/xvdb [11712] terminated with status 255
mountall: Problem activating swap: /dev/xvdb

# do-release-upgrade -d
.....
.....
Upgrading
Done downloading            
Exception during pm.DoInstall():  E:Internal Error, Could not perform immediate 
configuration (2) on mountall

Could not install the upgrades

Error during commit 
'E:Internal Error, Could not perform immediate configuration (2) on 
mountall' 
Restoring original system state

-- 
Upgrade from karmic to lucid failes with Internal Error, Could not perform 
immediate configuration (2) on mountall
https://bugs.launchpad.net/bugs/559582
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