Confirming this bug, it is still happening on Gutsy RC. Difference was I
did a fresh installation, so no backup kernel to fall back to. Booted
from the LiveCD, chrooted into the installation and then ran the
commands specified here followed by depmod. Finally I'm able to boot
into Ubuntu properly without this error.
** Changed in: initramfs-tools (Ubuntu)
Status: New => Confirmed
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"-generic" kernel doesn't boot after upgrade to Edgy prerelease (but -386 does)
https://bugs.launchpad.net/bugs/67256
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