Time was right (time is flying when you're having fun ;-)
I upgraded the machine (aptitude update; aptitude dist-upgrade)
reboot with latest kernel/xserver etc but still no go.
Installed strace and output is added to this bug report


** Attachment added: "strace oem-config"
   http://librarian.launchpad.net/7080745/strace_oem-config.out.bz2

-- 
[apport] oem-config crashed with IOError in cleanup()
https://launchpad.net/bugs/99211

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