Thank you for taking the time to report this issue and help to improve
Ubuntu.
The error is:
update-initramfs: Generating /boot/initrd.img-2.6.31-12-generic
Running postinst hook script /sbin/update-grub.
Searching for GRUB installation directory ... found: /boot/grub
Searching for default file ... Generating /boot/grub/default file and setting
the default boot entry to 0
Searching for GRUB installation directory ... found: /boot/grub
Testing for an existing GRUB menu.lst file ...
Could not find /boot/grub/menu.lst file. Would you like
/boot/grub/menu.lst generated for you? (y/N)
Not creating /boot/grub/menu.lst as you wish
User postinst hook script [/sbin/update-grub] exited with value 1
You have received this error because grub is installed and configured as
your bootloader, but you have no menu.lst telling the system how to
boot; and you ran the package installation non-interactively, preventing
update-grub from automatically creating the menu file to fix this. The
error therefore appears to be correctly notifying you of a problem on
your system, which you need to take action to correct. Closing this bug
report as invalid.
** Changed in: grub (Ubuntu)
Status: New => Invalid
--
package linux-image-2.6.31-12-generic 2.6.31-12.40 failed to install/upgrade:
installed post-installation script subprocess exited with errorcode 1
https://bugs.launchpad.net/bugs/445569
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