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The error message in the log is:
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
Ubuntu 9.10 uses grub2 (grub-pc) by default, but this shows that you
have the grub1 (grub) package installed. To correct this, please run
'sudo apt-get install grub-pc' to reinstall grub2.
** Changed in: grub (Ubuntu)
Status: New => Invalid
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package linux-image-2.6.31-20-generic 2.6.31-20.57 failed to install/upgrade:
subprocess installed post-installation script returned error exit status 1
https://bugs.launchpad.net/bugs/532390
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