If you are attempting to do an upgrade to Adapt Framework v2.0.6 and receive the error above you need to install needle. In a terminal window, before running node upgrade.js - run npm install needle then try running node upgrade.js.
Actually Mark, the dependency on needle was something which was introduced with the authoring tool v0.1.4. The instructions to remove node_modules and run "npm install" were part of the change log:
https://github.com/adaptlearning/adapt_authoring/blob/master/CHANGELOG.md#014---2015-11-25
You should always check the change log between upgrades as any manual steps will be detailed here.
Regards,
Brian