Thanks for your bugreport.
Here is the error:
...
Setting up rsync (2.6.9-6ubuntu1) ...
usage: update-rc.d [-n] [-f] <basename> remove
update-rc.d [-n] <basename> defaults [NN | sNN kNN]
update-rc.d [-n] <basename> start|stop NN runlvl [runlvl] [...] .
-n: not really
-f: force
dpkg: error processing rsync (--configure):
subprocess post-installation script returned error exit status 1
...
What version of sysv-rc are you using?
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[Hardy] beta errors while updating from gusty 7.10
https://bugs.launchpad.net/bugs/213153
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