Packages like FGLRX wont work upon upgrade if you have a card that is not 
supported by the latest version of ATIs driver.
Running unsupported pacakges will give you errors.

I have a feeling your initramfs isn't being created properly.

If you are able to boot can you give us the version info of dmraid?
sudo dmraid --version

Also you can try updating the initramfs and updating grub.
sudo update-initramfs -u -k all
sudo update-grub

-- 
Upgrade fails from 8.04 LTS to 10.04 LTS (beta)
https://bugs.launchpad.net/bugs/560748
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