Thanks for your report.
The relevant error is
---
Setting up linux-image-2.6.31-16-generic (2.6.31-16.52) ...
Running depmod.
update-initramfs: Generating /boot/initrd.img-2.6.31-16-generic
cpio: ./etc/modprobe.d/blacklist-oss.conf: Cannot stat: No such file or
directory
cpio:
** Attachment added: AptOrdering.txt
http://launchpadlibrarian.net/36468533/AptOrdering.txt
** Attachment added: Dependencies.txt
http://launchpadlibrarian.net/36468534/Dependencies.txt
** Attachment added: Dmesg.txt
http://launchpadlibrarian.net/36468535/Dmesg.txt
** Attachment