dpkg: error processing linux-image-2.6.32-22-generic (--remove):
Package is in a very bad inconsistent state - you should
reinstall it before attempting a removal.
dpkg -i /var/cache/apt/archive/linux-image-2.6.32-22-generic<tab for completion>
Cheers.
You might also want to fixup that USB thinger before you go much further... as that is probably being scanned during the initrd fixup and the grub config.
I turned the external drive back on and did the kernel by itself via dpkg. Finished right away. Rest of the upgrade is running now, will see how it goes.