Never do an ipkg upgrade from the 2008 feed over a 2007 image.
This will lead almost certainly to an unusable system and if you think you have suceeded to 97% you are rather lucky or have not yet encountered all consequences.
Upgrading from 2007 to 2008 requires reflashing with a new 2008 image, otherwise no support can be given and questions arising from such procedures are good candidates to be ignored.
Reflashing is the (only) official way as communicated by the Angstrom project.
Oliver