I'm having the same problem. There's a relevant mailing list thread about this problem at http://haskell.1045720.n5.nabble.com/Cabal-install-fails-due-to-recent-HUnit-td5715081i20.html
I believe the upshot is that the format of the packages files has changed, and the cabal version in use here (I have the same version, obtained from ubuntu oneiric) can't understand the files. You can't even do "cabal install cabal-install".
The mailing list thread just peters out in september 2012 without a clear decision being made, but I think they decided to just ignore the problem. There's not a clear statement of what to do for users like us; I think the only approach possible is to install haskell from scratch, but I don't yet know where to start with that.
EDIT: I fixed this by downloading the latest source package of cabal from http://hackage.haskell.org/packages/archive/cabal-install/1.16.0.2/cabal-install-1.16.0.2.tar.gz, unpacking it and following the instructions in its README to do a local install.