It seems like you have time-1.4.2 installed, the latest GHC (7.10) comes with time 1.5.*. Are you sure you are on 7.10?
The core of the problem is that hakyll needs time >= 1.5, and unix is using the pre-installed time-1.4.2. This is rejected because only one version of a library can be used in the same install plan.
As the error message suggests you can you increase the backjump limit so I'd try that first. I typically pass --reorder-goals --max-backjumps=-1 to cabal-install. Running this sometimes takes a long time, but it will finish eventually.
You can also try installing an older version of hakyll that works with time-1.4.2 (see the hackage page for info on older versions).
Lastly, are you using a sandbox? It also helps with reducing problems. I never install anything in the global or user level package db, only in sandboxes.
HTH,
Adam