Thank you for taking the time to report this problem and help to improve
Ubuntu.
The message in the logs is:
Setting up linux-image-2.6.31-17-generic (2.6.31-17.54) ...
Running depmod.
update-initramfs: Generating /boot/initrd.img-2.6.31-17-generic
Running postinst hook script /sbin/update-grub.
Searching for GRUB installation directory ... found: /boot/grub
Searching for default file ... found: /boot/grub/default
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) n
Not creating /boot/grub/menu.lst as you wish
User postinst hook script [/sbin/update-grub] exited with value 1
dpkg: error processing linux-image-2.6.31-17-generic (--configure):
This usually indicates that your system was installed with grub2 (the
'grub-pc' package), but that you subsequently selected grub1, or a
package that depends on it, for installation. Do you recall doing this?
If this is the problem, then running 'sudo apt-get install grub-pc' to
re-install grub2 should solve this for you.
** Changed in: grub (Ubuntu)
Status: New => Incomplete
--
Did not complete installation
https://bugs.launchpad.net/bugs/505603
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