Comment 16 for bug 855793

Second try.
I deleted my Virtual Machines, re-installed from the .iso, and tried this solution:
http://ubuntuforums.org/showthread.php?p=11558447

Step 1: Open a Konsole and type:
sudo apt-get update (I had to supply my password)
sudo apt-get upgrade (It asked me if I was willing to give it space to download the updates, and I said Y. It appeared to run successfully and after some 10+ minutes of updates flying by, it gave me back my bash prompt)
exit (to close the Konsole)

Step 2: Re-boot (I used the Kickoff Application Launcher, Leave, Shut Down, Turn Off, which automatically exits VMware Player)

Step 3: Seems to work, and this time the notifier tells me only six security updates are available.
So, I cross my fingers and do the graphical update with Muon.
It appeared to be successful, and I closed Muon and noticed the System Notification Helper reported that A system restart is needed to complete the update process.

Step 4: Re-boot (I used the Kickoff Application Launcher, Leave, Shut Down, Turn Off, which automatically exits VMware Player)

Step 5: SUCCESS! No pending updates, posting this from rekonq on an up-to-date Kubuntu 11.10 in a VMWare VM.