I also solved the problem by installing "grub-pc" from package manager.
The upgrade didn't force and update to GRUB2 so many things were broken
by the incompatible kernel version.
SOLVED!
** Changed in: xserver-xorg-input-synaptics (Ubuntu)
Status: New => Fix Released
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Karmic synaptics touchpad not recognized Dell Latitude C400
https://bugs.launchpad.net/bugs/467909
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