>From your DpkgTerminalLog:
"gzip: stdout: No space left on device"
There's your problem - you're running out of space on /boot. ~5MiB isn't enough
for initrd image.
** Changed in: initramfs-tools (Ubuntu)
Status: New => Invalid
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package linux-image-2.6.35-18-generic 2.6.35-18.24 failed to install/upgrade:
subprocess installed post-installation script returned error exit status 2
https://bugs.launchpad.net/bugs/623828
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