The relevant message is:
=====
update-initramfs: Generating /boot/initrd.img-2.6.31-16-generic
Running postinst hook script /sbin/update-grub.
Searching for GRUB installation directory ... found: /boot/grub
Searching for default file ... found: /boot/grub/default
Testing for an existing GRUB menu.lst file ...
Could not find /boot/grub/menu.lst file. Would you like /boot/grub/menu.lst generated for you? (y/N) N
Not creating /boot/grub/menu.lst as you wish
User postinst hook script [/sbin/update-grub] exited with value 1
=====
You have received this error because grub is installed and configured as your bootloader, but you have no menu.lst telling the system how to boot; and you ran the package installation non-interactively, preventing update-grub from automatically creating the menu file to fix this. The error therefore appears to be correctly notifying you of a problem on your system, which you need to take action to correct. Closing this bug report as invalid.
Thanks for your report
The relevant message is: img-2.6. 31-16-generic
=====
update-initramfs: Generating /boot/initrd.
Running postinst hook script /sbin/update-grub.
Searching for GRUB installation directory ... found: /boot/grub
Searching for default file ... found: /boot/grub/default
Testing for an existing GRUB menu.lst file ...
Could not find /boot/grub/menu.lst file. Would you like /boot/grub/menu.lst generated for you? (y/N) N
Not creating /boot/grub/menu.lst as you wish
User postinst hook script [/sbin/update-grub] exited with value 1
=====
You have received this error because grub is installed and configured as your bootloader, but you have no menu.lst telling the system how to boot; and you ran the package installation non-interactively, preventing update-grub from automatically creating the menu file to fix this. The error therefore appears to be correctly notifying you of a problem on your system, which you need to take action to correct. Closing this bug report as invalid.