I ran into the same problem on a (Intel) Macbook Pro. The problem is
because something is leaving 0 byte initrd.img files around in /boot. A
trivial work around is to rm or move them out of the way. However this
effectively breaks upgrades from Edgy to Feisty on machines that use
lilo. Either update-initramfs shouldn't be generating these 0 byte
initrd.img files or lilo needs to be fixed to ignore them.
** Changed in: lilo (Ubuntu)
Status: Unconfirmed => Confirmed
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lilo won't add the new kernel 2.6.20
https://launchpad.net/bugs/88219
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