Is this the same issue? I'm just going to paste what I experienced from here:
http://digg.com/linux_unix/Upgrading_to_Ubuntu_7_10_NOW_before_the_rush

My upgrade dialog freezes at the point its status is "asking for
confirmation". Anyone else experiencing this?

I've tried the upgrade 5 times now, always with this same freeze. Maybe
I should wait til the 18th?

btw, I tried the instructions @
https://help.ubuntu.com/community/GutsyUpgrades

They didn't help. The "Distribution Upgrade" dialog still freezes. I
don't know if it is just taking a long time, or if some error has
occurred behind the scenes without notification at the window level.

Processor activity is low, and there doesn't seem to be any network
activity either, so I think it just died while leaving that dialog
orphaned.

I've ultimately decided not to try anymore until the 18th. I just hope
my tries (this morning) don't corrupt the official-release's ability to
upgrade my laptop on the 18th.

If you can't get the upgrade to work, be sure to undo the software sources it 
added by going to:
System > Administration > Software Sources > Third Party

I removed all 3rd party sources, but you may only need to remove the
ones with "gusty" in them.

Also, you'll need to re-check everything in Ubuntu Software tab and
under the Updates tab make sure you have "important security updates"
checked (I also check recommended updates).

After all these changes, click the close button (not the revert button).

-- 
[MASTER] Upgrade Tool Crashed
https://bugs.launchpad.net/bugs/99380
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