I have had a similar issue. I installed kubuntu 7.10 on i386 yesterday,
installed ssh-server, then performed a dist. upgrade. Having said that,
the errors reported when I looked at it with sudo dpkg --configure -a
were about corrupt archives, a removed, purged, cleaned and reinstalled
and things were somewhat more successful.
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[apport] package ssh failed to install/upgrade:
https://bugs.launchpad.net/bugs/108338
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