SOLVED - at least for me.
Changed http://... into ftp://... in /etc/apt/sources.list. This solved the gpg 
errors. 

Thanks to 'pellgarlic' in this thread:
http://ubuntuforums.org/showthread.php?t=187726

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Upgrade 7.10 - 8.04 LTS - Error authenticating
https://bugs.launchpad.net/bugs/222490
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