I've decided to upgrade today to Heron and unfortunately encounter this issue still, even after putting your PPA in my sources.list. At the moment, the system only boots with the old kernel from Gutsy.

Here's the output of apt-get upgrade and then update:

Preparing to replace dmraid 1.0.0.rc14-0ubuntu2 (using .../dmraid_1.0.0.rc14-0ubuntu3~ppa1_i386.deb) ...
 * Shutting down DMRAID devices...                                              *** glibc detected *** /sbin/dmraid: free(): invalid next size (fast): 0x08070a08 ***
======= Backtrace: =========
/lib/tls/i686/cmov/libc.so.6[0xb7e65a85]
/lib/tls/i686/cmov/libc.so.6(cfree+0x90)[0xb7e694f0]
/sbin/dmraid(_dbg_free+0x1d)[0x8054cad]
/sbin/dmraid[0x8052272]
/sbin/dmraid(free_raid_dev+0x29)[0x8052a49]
/sbin/dmraid[0x8053081]
/sbin/dmraid(discover_raid_devices+0x109)[0x8053489]
/sbin/dmraid(perform+0x1e5)[0x804b7a5]
/sbin/dmraid(main+0xa0)[0x804b130]
/lib/tls/i686/cmov/libc.so.6(__libc_start_main+0xe0)[0xb7e10450]
/sbin/dmraid[0x804b021]
======= Memory map: ========
08048000-0806d000 r-xp 00000000 fe:02 245777     /sbin/dmraid
0806d000-0806e000 rw-p 00025000 fe:02 245777     /sbin/dmraid
0806e000-08090000 rw-p 0806e000 00:00 0          [heap]
b7c00000-b7c21000 rw-p b7c00000 00:00 0 
b7c21000-b7d00000 ---p b7c21000 00:00 0 
b7df5000-b7df6000 rw-p b7df5000 00:00 0 
b7df6000-b7df8000 r-xp 00000000 fe:02 8863805    /lib/tls/i686/cmov/libdl-2.7.so
b7df8000-b7dfa000 rw-p 00001000 fe:02 8863805    /lib/tls/i686/cmov/libdl-2.7.so
b7dfa000-b7f43000 r-xp 00000000 fe:02 8863800    /lib/tls/i686/cmov/libc-2.7.so
b7f43000-b7f44000 r--p 00149000 fe:02 8863800    /lib/tls/i686/cmov/libc-2.7.so
b7f44000-b7f46000 rw-p 0014a000 fe:02 8863800    /lib/tls/i686/cmov/libc-2.7.so
b7f46000-b7f49000 rw-p b7f46000 00:00 0 
b7f49000-b7f7c000 r-xp 00000000 fe:02 8831020    /lib/libsepol.so.1
b7f7c000-b7f7d000 rw-p 00032000 fe:02 8831020    /lib/libsepol.so.1
b7f7d000-b7f7e000 rw-p b7f7d000 00:00 0 
b7f7e000-b7f95000 r-xp 00000000 fe:02 8831081    /lib/libselinux.so.1
b7f95000-b7f97000 rw-p 00016000 fe:02 8831081    /lib/libselinux.so.1
b7f97000-b7fab000 r-xp 00000000 fe:02 8831098    /lib/libdevmapper.so.1.02.1
b7fab000-b7fad000 rw-p 00013000 fe:02 8831098    /lib/libdevmapper.so.1.02.1
b7fb3000-b7fbd000 r-xp 00000000 fe:02 8831014    /lib/libgcc_s.so.1
b7fbd000-b7fbe000 rw-p 0000a000 fe:02 8831014    /lib/libgcc_s.so.1
b7fbe000-b7fc1000 rw-p b7fbe000 00:00 0 
b7fc1000-b7fdb000 r-xp 00000000 fe:02 8831013    /lib/ld-2.7.so
b7fdb000-b7fdd000 rw-p 00019000 fe:02 8831013    /lib/ld-2.7.so
bfc4b000-bfc61000 rw-p bfc4b000 00:00 0          [stack]
ffffe000-fffff000 r-xp 00000000 00:00 0          [vdso]
/etc/init.d/dmraid: line 13:  8014 Aborted                 /sbin/dmraid --activate no --ignorelocking > /dev/null 2>&1
invoke-rc.d: initscript dmraid, action "stop" failed.
dpkg: warning - old pre-removal script returned error exit status 134
dpkg - trying script from the new package instead ...
 * Shutting down DMRAID devices...                                              *** glibc detected *** /sbin/dmraid: free(): invalid next size (fast): 0x08070a08 ***
======= Backtrace: =========
/lib/tls/i686/cmov/libc.so.6[0xb7e30a85]
/lib/tls/i686/cmov/libc.so.6(cfree+0x90)[0xb7e344f0]
/sbin/dmraid(_dbg_free+0x1d)[0x8054cad]
/sbin/dmraid[0x8052272]
/sbin/dmraid(free_raid_dev+0x29)[0x8052a49]
/sbin/dmraid[0x8053081]
/sbin/dmraid(discover_raid_devices+0x109)[0x8053489]
/sbin/dmraid(perform+0x1e5)[0x804b7a5]
/sbin/dmraid(main+0xa0)[0x804b130]
/lib/tls/i686/cmov/libc.so.6(__libc_start_main+0xe0)[0xb7ddb450]
/sbin/dmraid[0x804b021]
======= Memory map: ========
08048000-0806d000 r-xp 00000000 fe:02 245777     /sbin/dmraid
0806d000-0806e000 rw-p 00025000 fe:02 245777     /sbin/dmraid
0806e000-08090000 rw-p 0806e000 00:00 0          [heap]
b7c00000-b7c21000 rw-p b7c00000 00:00 0 
b7c21000-b7d00000 ---p b7c21000 00:00 0 
b7dc0000-b7dc1000 rw-p b7dc0000 00:00 0 
b7dc1000-b7dc3000 r-xp 00000000 fe:02 8863805    /lib/tls/i686/cmov/libdl-2.7.so
b7dc3000-b7dc5000 rw-p 00001000 fe:02 8863805    /lib/tls/i686/cmov/libdl-2.7.so
b7dc5000-b7f0e000 r-xp 00000000 fe:02 8863800    /lib/tls/i686/cmov/libc-2.7.so
b7f0e000-b7f0f000 r--p 00149000 fe:02 8863800    /lib/tls/i686/cmov/libc-2.7.so
b7f0f000-b7f11000 rw-p 0014a000 fe:02 8863800    /lib/tls/i686/cmov/libc-2.7.so
b7f11000-b7f14000 rw-p b7f11000 00:00 0 
b7f14000-b7f47000 r-xp 00000000 fe:02 8831020    /lib/libsepol.so.1
b7f47000-b7f48000 rw-p 00032000 fe:02 8831020    /lib/libsepol.so.1
b7f48000-b7f49000 rw-p b7f48000 00:00 0 
b7f49000-b7f60000 r-xp 00000000 fe:02 8831081    /lib/libselinux.so.1
b7f60000-b7f62000 rw-p 00016000 fe:02 8831081    /lib/libselinux.so.1
b7f62000-b7f76000 r-xp 00000000 fe:02 8831098    /lib/libdevmapper.so.1.02.1
b7f76000-b7f78000 rw-p 00013000 fe:02 8831098    /lib/libdevmapper.so.1.02.1
b7f7e000-b7f88000 r-xp 00000000 fe:02 8831014    /lib/libgcc_s.so.1
b7f88000-b7f89000 rw-p 0000a000 fe:02 8831014    /lib/libgcc_s.so.1
b7f89000-b7f8c000 rw-p b7f89000 00:00 0 
b7f8c000-b7fa6000 r-xp 00000000 fe:02 8831013    /lib/ld-2.7.so
b7fa6000-b7fa8000 rw-p 00019000 fe:02 8831013    /lib/ld-2.7.so
bfcfd000-bfd12000 rw-p bfcfd000 00:00 0          [stack]
ffffe000-fffff000 r-xp 00000000 00:00 0          [vdso]
/etc/init.d/dmraid: line 13:  8045 Aborted                 /sbin/dmraid --activate no --ignorelocking > /dev/null 2>&1
invoke-rc.d: initscript dmraid, action "stop" failed.
dpkg: error processing /var/cache/apt/archives/dmraid_1.0.0.rc14-0ubuntu3~ppa1_i386.deb (--unpack):
 subprocess new pre-removal script returned error exit status 134
 * Setting up DMRAID devices...                                                 *** glibc detected *** /sbin/dmraid: free(): invalid next size (fast): 0x08070a08 ***
======= Backtrace: =========
/lib/tls/i686/cmov/libc.so.6[0xb7dcaa85]
/lib/tls/i686/cmov/libc.so.6(cfree+0x90)[0xb7dce4f0]
/sbin/dmraid(_dbg_free+0x1d)[0x8054cad]
/sbin/dmraid[0x8052272]
/sbin/dmraid(free_raid_dev+0x29)[0x8052a49]
/sbin/dmraid[0x8053081]
/sbin/dmraid(discover_raid_devices+0x109)[0x8053489]
/sbin/dmraid(perform+0x1e5)[0x804b7a5]
/sbin/dmraid(main+0xa0)[0x804b130]
/lib/tls/i686/cmov/libc.so.6(__libc_start_main+0xe0)[0xb7d75450]
/sbin/dmraid[0x804b021]
======= Memory map: ========
08048000-0806d000 r-xp 00000000 fe:02 245777     /sbin/dmraid
0806d000-0806e000 rw-p 00025000 fe:02 245777     /sbin/dmraid
0806e000-08090000 rw-p 0806e000 00:00 0          [heap]
b7c00000-b7c21000 rw-p b7c00000 00:00 0 
b7c21000-b7d00000 ---p b7c21000 00:00 0 
b7d5a000-b7d5b000 rw-p b7d5a000 00:00 0 
b7d5b000-b7d5d000 r-xp 00000000 fe:02 8863805    /lib/tls/i686/cmov/libdl-2.7.so
b7d5d000-b7d5f000 rw-p 00001000 fe:02 8863805    /lib/tls/i686/cmov/libdl-2.7.so
b7d5f000-b7ea8000 r-xp 00000000 fe:02 8863800    /lib/tls/i686/cmov/libc-2.7.so
b7ea8000-b7ea9000 r--p 00149000 fe:02 8863800    /lib/tls/i686/cmov/libc-2.7.so
b7ea9000-b7eab000 rw-p 0014a000 fe:02 8863800    /lib/tls/i686/cmov/libc-2.7.so
b7eab000-b7eae000 rw-p b7eab000 00:00 0 
b7eae000-b7ee1000 r-xp 00000000 fe:02 8831020    /lib/libsepol.so.1
b7ee1000-b7ee2000 rw-p 00032000 fe:02 8831020    /lib/libsepol.so.1
b7ee2000-b7ee3000 rw-p b7ee2000 00:00 0 
b7ee3000-b7efa000 r-xp 00000000 fe:02 8831081    /lib/libselinux.so.1
b7efa000-b7efc000 rw-p 00016000 fe:02 8831081    /lib/libselinux.so.1
b7efc000-b7f10000 r-xp 00000000 fe:02 8831098    /lib/libdevmapper.so.1.02.1
b7f10000-b7f12000 rw-p 00013000 fe:02 8831098    /lib/libdevmapper.so.1.02.1
b7f18000-b7f22000 r-xp 00000000 fe:02 8831014    /lib/libgcc_s.so.1
b7f22000-b7f23000 rw-p 0000a000 fe:02 8831014    /lib/libgcc_s.so.1
b7f23000-b7f26000 rw-p b7f23000 00:00 0 
b7f26000-b7f40000 r-xp 00000000 fe:02 8831013    /lib/ld-2.7.so
b7f40000-b7f42000 rw-p 00019000 fe:02 8831013    /lib/ld-2.7.so
bfd5e000-bfd73000 rw-p bfd5e000 00:00 0          [stack]
ffffe000-fffff000 r-xp 00000000 00:00 0          [vdso]
/etc/init.d/dmraid: line 13:  8077 Aborted                 /sbin/dmraid --activate yes --ignorelocking > /dev/null 2>&1
invoke-rc.d: initscript dmraid, action "start" failed.
dpkg: error while cleaning up:
 subprocess post-installation script returned error exit status 134
Errors were encountered while processing:
 /var/cache/apt/archives/dmraid_1.0.0.rc14-0ubuntu3~ppa1_i386.deb
E: Sub-process /usr/bin/dpkg returned an error code (1)

-=-=-=-=-=-=-=

root@amsterdam:/dev/mapper# ls -al
total 0
drwxr-xr-x  2 root root     140 2008-04-18 23:17 .
drwxr-xr-x 13 root root   14380 2008-04-18 23:18 ..
crw-rw----  1 root root  10, 63 2008-04-18 23:17 control
brw-rw----  1 root disk 254,  0 2008-04-18 23:17 isw_cdbfbgedbh_Volume0
brw-rw----  1 root disk 254,  1 2008-04-18 23:17 isw_cdbfbgedbh_Volume01
brw-rw----  1 root disk 254,  2 2008-04-18 23:17 isw_cdbfbgedbh_Volume02
brw-rw----  1 root disk 254,  3 2008-04-18 23:17 isw_cdbfbgedbh_Volume03

-=-=-=-=-=-=-=-=

title           Ubuntu 8.04, kernel 2.6.24-16-generic
root            (hd0,1)
kernel          /boot/vmlinuz-2.6.24-16-generic root=/dev/mapper/isw_cdbfbgedbh_Volume02 ro quiet splash
initrd          /boot/initrd.img-2.6.24-16-generic

title           Ubuntu 7.10, kernel 2.6.22-14-generic
root            (hd0,1)
kernel          /boot/vmlinuz-2.6.22-14-generic root=/dev/mapper/isw_cdbfbgedbh_Volume02 ro quiet splash
initrd          /boot/initrd.img-2.6.22-14-generic

-=-=-=-=-=-=-=-=-=

Motherboard is also a Gigabyte GA-P35C-DS3R. 

Let me know what else I can do to provide more information to help solve this bug.