This occurred to me on a brand-new Acer Aspire One 532h-2964, which came
with Windows 7 Starter.  I installed Ubuntu Netbook Remix 9.10 and chose
default partitioning.  Dual-booting worked as expected prior to this
update.  This is the first update since installing Ubuntu.

I chose the 3-three way merge of the /boot/grub/grub.cfg file with the
installer's grub.cfg, which has worked fine on a desktop for a couple of
years, but on this occasion the update manager reported an inability to
merge the files.  It reported conflicts regarding /etc/default/grub, as
noted here:

GRUB_DEFAULT=0
<<<<<<< Older
GRUB_HIDDEN_TIMEOUT=0
=======
#GRUB_HIDDEN_TIMEOUT=0
>>>>>>> New
#GRUB_HIDDEN_TIMEOUT_QUIET=true

I'll collect relevant messages and post them, and see if system can boot
into both Windows and Ubuntu.

-- 
package grub-pc 1.97~beta4-1ubuntu4 failed to install/upgrade: subprocess 
installed post-installation script returned error exit status 1
https://bugs.launchpad.net/bugs/472298
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