I have this problem too. I did a fresh install (as the upgrade from
12.04 to 12.10 introduced a lot of other bugs that I hope will go away
with a fresh install), and since, for some reason, the open source
driver crashes constantly on my system (I had to install the gnome
fallback in order to even run for more than a few seconds in X mode), I
tried installing the nvidia drivers.

It fails for the same reason as above. I noticed that the .17 kernel
headers were installed, but not the .18 ones -- and realized I did an
upgrade immediately after getting up and running, as the first thing.

So it does indeed look as if the headers are installed correctly
initially by the installer, but when the kernel is upgraded, the new
headers are not installed (likely because the linux-headers-generic is
not installed/removed).

The fix is as above (sudo apt-get install linux-headers-generic # will
also cause DKMS to rebuild the nvidia drivers) -- but I guess a new user
will have some challenges with this.

Unfortunately the open source driver still has too many bugs on my
hardware (GT 520 type of card), so I need the nvidia one.

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https://bugs.launchpad.net/bugs/1070427

Title:
  Ubiquity removes kernel headers, fails to build nonfree drivers

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