Similar for me also.
I installed two .iso images using VMware Player.
I installed Ubuntu 11.10 successfully and was able to perform all software 
updates.
I installed Kubuntu 11.10 successfully, but was *NOT* able to perform all 
software updates, and it hung at 56% Running dpkg .
I tried this solution:
http://askubuntu.com/questions/89401/first-update-after-fresk-kubuntu-install-hangs-bc-of-dpkg-now-what

Step 1: Open a Konsole and type:
ps -e | grep muon
sudo kill #### (number identified above (I had to supply my password, and now 
the muon-updater window closed))
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: Play the Virtual Machine. Failure:
Error while opening the virtual machine: A serious error occured when accessing 
this virtual machine: Input/output error
Configuration file: \\[path stuff here]\My Documents\Virtual 
Machines\Kubuntu1110\Kubuntu1110.vmx.

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https://bugs.launchpad.net/bugs/855793

Title:
  Kubuntu 11.10 beta 1: Error upgrading using muon

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