Thanks for your report.
The relevant error is
---
Setting up linux-image-2.6.31-20-generic (2.6.31-20.57) ...
Running depmod.
update-initramfs: Generating /boot/initrd.img-2.6.31-20-generic
Running postinst hook script /usr/sbin/update-grub.
Generating grub.cfg ...
No path or device is specified.
Try ``grub-probe --help'' for more information.
No path or device is specified.
Try ``grub-probe --help'' for more information.
User postinst hook script [/usr/sbin/update-grub] exited with value 1
dpkg: error processing linux-image-2.6.31-20-generic (--configure):
subprocess installed post-installation script returned error exit status 1
Did you change a file in /etc/grub.d ?
** Changed in: grub2 (Ubuntu)
Status: New => Incomplete
** Summary changed:
- package linux-image-2.6.31-20-generic 2.6.31-20.57 failed to install/upgrade:
subprocess installed post-installation script returned error exit status 1
+ No path or device is specified.
--
No path or device is specified.
https://bugs.launchpad.net/bugs/532010
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