Received the same error, after upgrading from dapper to edgy. (Using
apt-get dist-upgrade)

I can confirm the fix suggested in the previous comment worked. As after
the upgrade, the kernel being booted by default was in-fact linux-
image-386, rather than linux-image-generic

The following command updated the correct initrd

sudo update-initramfs -u -k `uname -r`

-- 
usplash: no usable theme found for 640x480
https://launchpad.net/bugs/60621

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