I'm seeing the same, system boots but goes into graphics safe mode.
$ apt-cache policy linux-restricted-modules
linux-restricted-modules:
Installed: (none)
Candidate: 2.6.24.20.22
Version table:
2.6.24.20.22 0
500 http://ubuntu.virginmedia.com hardy-proposed/restricted Packages
2.6.24.19.21 0
500 http://ubuntu.virginmedia.com hardy-updates/restricted Packages
500 http://security.ubuntu.com hardy-security/restricted Packages
2.6.24.16.18 0
500 http://ubuntu.virginmedia.com hardy/restricted Packages
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Hardy proposed 2.6.24-20-generic kernel update will not boot
https://bugs.launchpad.net/bugs/251344
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