update-manager crashes during distribution upgrade

Binary package hint: update-manager

during the update it crashed and can be reproduced.

cd /var/log/dist-upgrade
more apt.log shows:

updateStatus: Checking package manager
updateStatus: Updating repository information
WARNING: Failed to read mirror file
bzip2: (stdin) is not a bzip2 file.
bzip2: (stdin) is not a bzip2 file.
bzip2: (stdin) is not a bzip2 file.
bzip2: (stdin) is not a bzip2 file.
bzip2: (stdin) is not a bzip2 file.
updateStatus: Restoring original system state
bzip2: (stdin) is not a bzip2 file.
bzip2: (stdin) is not a bzip2 file.
bzip2: (stdin) is not a bzip2 file.
bzip2: (stdin) is not a bzip2 file.
bzip2: (stdin) is not a bzip2 file.
WARNING: Failed to read mirror file
updateStatus: Checking package manager
updateStatus: Updating repository information
WARNING: Failed to read mirror file
bzip2: (stdin) is not a bzip2 file.
bzip2: (stdin) is not a bzip2 file.
bzip2: (stdin) is not a bzip2 file.
bzip2: (stdin) is not a bzip2 file.
bzip2: (stdin) is not a bzip2 file.

tail -100 main.log shows:

chpad-integration0 libatk1.0-0 libxss1 ifupdown libpt-plugins-v4l2 xvncviewer fortunes-min libeel2-data festival gconf2-common kdepim-kio-plugins at gnome-app-install libsm6 hpijs liblircclient0 libpisock9 libxres1 bzip2 perl-modules ttf-tamil-fonts xserver-xorg-video-sisusb konversation diveintopython libglew1 gettext xsane-common libgdl-1-0 onboard libgdbm3 libtheora0 libgtk2.0-cil scim ttf-malayalam-fonts gray-theme libogg0 kubuntu-desktop libcompress-zlib-perl ftp libdrm2 libxmlsec1 libdb4.4 anacron libgconf2-4 telnet iputils-arping ico librsvg2-2 libsensors3 libqt4-sql libscrollkeeper0 xsetpointer ubuntu-keyring eog gnome-screensaver yelp ttf-arphic-ukai usbutils e2fsprogs libdb4.3 vnc-common perl-base time cpp xserver-xorg-input-elographics libvte-common base-passwd libglib2.0-cil
2007-05-17 09:30:33,692 DEBUG updateSourcesList()
2007-05-17 09:30:33,783 DEBUG rewriteSourcesList()
2007-05-17 09:30:34,279 DEBUG examining: 'deb http://beryl.xglusers.de/ubuntu.beryl-project.org/ edgy main'
2007-05-17 09:30:34,281 DEBUG entry '# deb http://beryl.xglusers.de/ubuntu.beryl-project.org/ edgy main' was disabled (unknown mirror)
2007-05-17 09:30:34,282 DEBUG examining: 'deb http://gb.archive.ubuntu.com/ubuntu/ edgy-proposed main'
2007-05-17 09:30:34,282 DEBUG entry 'deb http://gb.archive.ubuntu.com/ubuntu/ feisty-proposed main' updated to new dist
2007-05-17 09:30:34,282 DEBUG examining: 'deb-src http://nl.archive.ubuntu.com/ubuntu/ edgy main restricted'
2007-05-17 09:30:34,282 DEBUG entry 'deb-src http://nl.archive.ubuntu.com/ubuntu/ feisty main restricted' updated to new dist
2007-05-17 09:30:34,282 DEBUG examining: 'deb http://nl.archive.ubuntu.com/ubuntu/ edgy-updates main restricted'
2007-05-17 09:30:34,282 DEBUG entry 'deb http://nl.archive.ubuntu.com/ubuntu/ feisty-updates main restricted' updated to new dist
2007-05-17 09:30:34,282 DEBUG examining: 'deb-src http://nl.archive.ubuntu.com/ubuntu/ edgy-updates main restricted'
2007-05-17 09:30:34,283 DEBUG entry 'deb-src http://nl.archive.ubuntu.com/ubuntu/ feisty-updates main restricted' updated to new dist
2007-05-17 09:30:34,283 DEBUG examining: 'deb http://security.ubuntu.com/ubuntu edgy-security main restricted'
2007-05-17 09:30:34,283 DEBUG entry 'deb http://security.ubuntu.com/ubuntu feisty-security main restricted' updated to new dist
2007-05-17 09:30:34,283 DEBUG examining: 'deb-src http://security.ubuntu.com/ubuntu edgy-security main restricted'
2007-05-17 09:30:34,283 DEBUG entry 'deb-src http://security.ubuntu.com/ubuntu feisty-security main restricted' updated to new dist
2007-05-17 09:30:34,283 DEBUG examining: 'deb http://archive.ubuntu.com/ubuntu/ edgy universe multiverse main'
2007-05-17 09:30:34,283 DEBUG entry 'deb http://archive.ubuntu.com/ubuntu/ feisty universe multiverse main' updated to new dist
2007-05-17 09:30:34,283 DEBUG examining: 'deb http://archive.ubuntu.com/ubuntu/ edgy universe multiverse'
2007-05-17 09:30:34,284 DEBUG entry 'deb http://archive.ubuntu.com/ubuntu/ feisty universe multiverse' updated to new dist
2007-05-17 09:30:34,284 DEBUG examining: 'deb http://nl.archive.ubuntu.com/ubuntu/ edgy universe'
2007-05-17 09:30:34,284 DEBUG entry 'deb http://nl.archive.ubuntu.com/ubuntu/ feisty universe' updated to new dist
2007-05-17 09:30:34,284 DEBUG examining: 'deb http://security.ubuntu.com/ubuntu edgy-security universe'
2007-05-17 09:30:34,284 DEBUG entry 'deb http://security.ubuntu.com/ubuntu feisty-security universe' updated to new dist
2007-05-17 09:30:34,284 DEBUG examining: 'deb http://nl.archive.ubuntu.com/ubuntu/ edgy-updates universe'
2007-05-17 09:30:34,284 DEBUG entry 'deb http://nl.archive.ubuntu.com/ubuntu/ feisty-updates universe' updated to new dist
2007-05-17 09:31:41,404 ERROR IOError in cache.update(): 'Failed to fetch http://archive.ubuntu.com/ubuntu/dists/feisty/universe/binary-i386/Packages.bz2 Sub-process bzip2 returned an error code (2)
'. Retrying (currentRetry: 0)
2007-05-17 09:31:42,298 ERROR IOError in cache.update(): 'Failed to fetch http://archive.ubuntu.com/ubuntu/dists/feisty/universe/binary-i386/Packages.bz2 Sub-process bzip2 returned an error code (2)
Failed to fetch http://archive.ubuntu.com/ubuntu/dists/feisty/universe/binary-i386/Packages.bz2 Sub-process bzip2 returned an error code (2)
'. Retrying (currentRetry: 1)
2007-05-17 09:31:43,291 ERROR IOError in cache.update(): 'Failed to fetch http://archive.ubuntu.com/ubuntu/dists/feisty/universe/binary-i386/Packages.bz2 Sub-process bzip2 returned an error code (2)
Failed to fetch http://archive.ubuntu.com/ubuntu/dists/feisty/universe/binary-i386/Packages.bz2 Sub-process bzip2 returned an error code (2)
'. Retrying (currentRetry: 2)
2007-05-17 09:31:43,291 ERROR doUpdate() failed complettely