Thanks for following up. The issue is this:
Recommends: grub | lilo (>= 19.1)
That pulled grub onto your system, and it shouldn't be there.
So whoever is operating the ppa that you pulled this vserver package
from needs to update their kernel packaging to be current with the
official Ubuntu 9.10 kernel packaging.
To fix this particular problem on your own system, you can run 'sudo
apt-get install grub-pc' to switch back to grub2.
** Changed in: grub (Ubuntu)
Status: Incomplete => Invalid
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package linux-image-2.6.31-16-generic 2.6.31-16.52 failed to install/upgrade:
set subprocess post-installation script returned error exit status 1
https://bugs.launchpad.net/bugs/493491
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