Thanks for your report.
The relevant error is
---
Setting up linux-image-2.6.32-final (1) ...
Internal Error: Could not find image (/boot/vmlinuz-2.6.32-final)
dpkg: error processing linux-image-2.6.32-final (--configure):
subprocess installed post-installation script returned error exit
status 2
It doesn't look like a kernel image provided by Ubuntu. Because of this we
cannot support this problem.
Thanks and don't hesitate to submit any new bug.
** Changed in: nvidia-common (Ubuntu)
Status: New => Invalid
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package linux-image-2.6.31-16-generic 2.6.31-16.53 failed to install/upgrade:
run-parts: /etc/kernel/postinst.d/nvidia-common exited with return code 20
https://bugs.launchpad.net/bugs/495212
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