I performed the following steps and the problem went away:

  516  sudo aptitude remove postgresql-8.3
  517  sudo aptitude install postgresql-8.4


I have not yet completed the upgrade (I'm short on disk space), but this issue 
has disappeared.

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https://bugs.launchpad.net/bugs/1016805

Title:
  The package 'postgresql-8.3' is marked for removal but it is in the
  removal blacklist.

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