sounds like you don't have linux-restricted-modules installed. From the 
description:
"This package will always depend on the latest generic Linux restricted modules 
available."

If you install a single version of a restricted modules package, the
next time you upgrade the kernel you will have the same problem.

With linux-restricted-modules it will be automatically pulled-in on the
next kernel version...

** Changed in: ubuntu-meta (Ubuntu)
       Status: New => Incomplete

-- 
Upgrade 7.10 -> 8.04: nvidia binary driver failed, linux-restricted-modules not 
installed
https://bugs.launchpad.net/bugs/205184
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