You've set ramdisk= in /etc/kernel-img.conf to something unsupported.
This should be calling update-initramfs instead of mkinitramfs.
** Changed in: linux-source-2.6.22 (Ubuntu)
Status: New => Invalid
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cannot update kernel in gutsy - linux-image-2.6.22-12-generic.postinst script
results in an invalid call to mkinitramfs by specifying -c option
https://bugs.launchpad.net/bugs/144657
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