I can confirm this also happened to me.

I had done the online upgrade from Ubuntu 8.04 to 8.10, and foolishly
said "No" to the many, many questions asking me about what to do with my
menu.lst (I was afraid of losing my custom changes) without fully
understanding what they were asking.

Upon finishing the update, it did indeed boot into 8.10, but the GRUB
entry is as described above.  I don't know if it is actually using the
new kernel or not.

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menu.lst not updated with update to intrepid
https://bugs.launchpad.net/bugs/288885
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