Hours spent on nothing! Doing it twice will not solve the problem. Don’t worry you don’t have to upgrade your SD card. The reason you have this error because opkg has a forgotten bug which makes it use the memory instead of sd card. So, basically BeagleBoard runs out of memory. Solution? Let’s use the SD card. Use this commands instead. This will chance temporary directory to your home directory.
opkg -t ~ update opkg -t ~ upgrade opkg -t ~ install package_name
Enjoy the development!