Update:
I think the /etc/init.d/vboxdrv setup trick worked before because I had a 
different version of virtualbox.  Until the the virtualbox modules package is 
updated, you can just boot up using the old linux kernel (2.6.24-17-generic) in 
the GRUB boot menu (assuming that's how you're set up).

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after Kernel update, VirtualBox kernel driver not installed. 
https://bugs.launchpad.net/bugs/214393
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