In your report, you note:
...
gpg: symbol lookup error: /usr/local/lib/libreadline.so.5: undefined symbol: PC
...
Please remove that locally compiled version of libreadline5 (which
reinstalling via an Ubuntu package manager will not remove).
$ dlocate lib/libreadline.so.5
libreadline5: /lib/libreadline.so.5.2
libreadline5: /lib/libreadline.so.5
** Changed in: ubuntu-keyring (Ubuntu)
Status: New => Invalid
--
ubuntu-keyring can't be configured in ubutnu 7.10
https://bugs.launchpad.net/bugs/154965
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