Karmic now has sysv-rc 2.87dsf-4ubuntu3, so I think this bug is fixed.
** Changed in: sysvinit (Ubuntu)
Status: New => Fix Released
** Changed in: insserv (Ubuntu)
Status: New => Fix Released
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[karmic] insserv 1.12.0-11 conflicts against Upstart
https://bugs.launchpad.net/bugs/426187
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