Thank you for taking the time to report this issue and help to improve
Ubuntu.
The error in your log is:
Running postinst hook script /sbin/update-grub.
Searching for GRUB installation directory ... found: /boot/grub
Searching for default file ... Generating /boot/grub/default file and setting
the default boot entry to 0
Searching for GRUB installation directory ... found: /boot/grub
Testing for an existing GRUB menu.lst file ...
Could not find /boot/grub/menu.lst file. Would you like
/boot/grub/menu.lst generated for you? (y/N) n
Not creating /boot/grub/menu.lst as you wish
User postinst hook script [/sbin/update-grub] exited with value 1
This indicates that you have manually installed the grub1 package (grub)
instead of using the default grub2 package (grub-pc) that comes
installed with Ubuntu 10.04 LTS.
To correct this, run 'sudo apt-get install grub-pc' from the commandline
and follow the prompts.
** Changed in: grub (Ubuntu)
Status: New => Invalid
--
package linux-image-2.6.32-22-generic 2.6.32-22.33 failed to install/upgrade:
subprocess installed post-installation script returned error exit status 1
https://bugs.launchpad.net/bugs/574110
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