I experienced what I believe to be this same problem on my desktop machine. My desktop machine is not running on an external card, but it is running on a RAID controller which Ubuntu seems to think is 'removable.'
In any event, I have been able to replicate this problem by installing 9.10 on a USB flash drive and then upgrading it to 10.04. After a significant amount of troubleshooting, I have found that things appear to go wrong during the postinstall of the 'udisks' package. Running this line ('udevadm trigger --subsystem-match=block --action=change') in udisks.postinst results in empty /proc and /sys filesystems. Thus, the failure of policykit-1 to install is just a symptom of /proc being empty.
I'm still not sure whether this is a bug in udisks or possibly udev, but I guess I'll reassign it to udisks for now.
I experienced what I believe to be this same problem on my desktop machine. My desktop machine is not running on an external card, but it is running on a RAID controller which Ubuntu seems to think is 'removable.'
In any event, I have been able to replicate this problem by installing 9.10 on a USB flash drive and then upgrading it to 10.04. After a significant amount of troubleshooting, I have found that things appear to go wrong during the postinstall of the 'udisks' package. Running this line ('udevadm trigger --subsystem- match=block --action=change') in udisks.postinst results in empty /proc and /sys filesystems. Thus, the failure of policykit-1 to install is just a symptom of /proc being empty.
I'm still not sure whether this is a bug in udisks or possibly udev, but I guess I'll reassign it to udisks for now.