I don't know what that error message is, but, I would suggest that you do the system upgrade before the kernel upgrade. For myself, I only do kernel upgrades when I'm bored, or when the kernel is a year or two old.
By the way, what is your video card, and which sabayon kde did you install...sabayon 8? ,9? X? 32-bit or 64-bit?
Also keep in mind, the package manager will automatically install kernel revisions automatically, but new kernels must be installed manually. Generally, there are no issues when the package manager installs a REVISED kernel, but, when you install a NEW kernel, graphics issues must be addressed, especially for nvidia cards.