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Ubuntu.

The error in the logs is:

Running postinst hook script /usr/sbin/update-grub.
/etc/default/grub: 9: radeon.modeset=1: not found
User postinst hook script [/usr/sbin/update-grub] exited with value 127

This is not a bug in the grub package, but a local misconfiguration of 
/etc/default/grub, which must be a valid POSIX shell script.  If you
need assistance configuring grub, please see http://www.ubuntu.com/support for 
information about available support options.

** Changed in: grub2 (Ubuntu)
       Status: New => Invalid

-- 
package linux-image-2.6.32-25-generic 2.6.32-25.44 failed to install/upgrade: 
subprocess installed post-installation script returned error exit status 127
https://bugs.launchpad.net/bugs/654957
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