Update Manager gives out this error "GRUB instalation failed. Continue?" when doing a complete update of the current Ubuntu10.04 installed on a USB Drive using PendriveLinux's installer.

[Bogdan Gherman]

Binary package hint: grub-pc

Ubuntu linux was installed to a USB Drive on a Windows XP SP3 laptop, and the USB Drive was booted on the same laptop.
Everything was perfect until the Update Manager was fired up and ALL the default packages that were selected were installed.
The crash happened at the step when: "Configuring grub-pc"

With the error message:
==<cut=here>==================================================================
Setting up grub-pc (1.98-lubuntu6)
/usr/sbin/grub-probr: error: cannot find device for /boot/grub (is the /dev mounted?).
No path or device is specified.
Try `/usr/sbin/grub-probe --help` for more information.
Auto-detection of a filesystem module failed.
Please specify the module with the option `--modules` explicitly.
==<cut=here>==================================================================

The same message is repeated for each attempt to answer the dialog box where the hdd drives and partitions are listed.
I tried different things:
1) select nothing;
2) select the USB Drive (and its partition)

but I didn't select to install grub on my main HDD as I am afraid it can ruin my lovely WindozeXP.

After doing the update, I suppose I have to install Ubuntu again on the USB Drive since, last time I did this at the next restart Ubuntu failed to start up! The bootup process halted with a kernel panic... This might happen with this instalation too!

Additional data:
lsb_release -rd

Description: Ubuntu 10.04 LTS
Release: 10.04

uname -a
Linux ubuntu 2.6.32-21-generic #32-Ubuntu SMP Fri Apr 16 08:10:02 UTC 2010 i686 GNU/Linux

ProblemType: Package
DistroRelease: Ubuntu 10.04
Package: linux-image-2.6.32-22-generic 2.6.32-22.36
Regression: No
Reproducible: Yes
ProcVersionSignature: Ubuntu 2.6.32-21.32-generic 2.6.32.11+drm33.2
Uname: Linux 2.6.32-21-generic i686
AlsaVersion: Advanced Linux Sound Architecture Driver Version 1.0.21.
AplayDevices:
 **** List of PLAYBACK Hardware Devices ****
 card 0: Intel [HDA Intel], device 0: AD198x Analog [AD198x Analog]
   Subdevices: 1/1
   Subdevice #0: subdevice #0
Architecture: i386
ArecordDevices:
 **** List of CAPTURE Hardware Devices ****
 card 0: Intel [HDA Intel], device 0: AD198x Analog [AD198x Analog]
   Subdevices: 1/1
   Subdevice #0: subdevice #0
AudioDevicesInUse:
 USER PID ACCESS COMMAND
 /dev/snd/controlC0: ubuntu 3772 F.... pulseaudio
CRDA: Error: [Errno 2] No such file or directory
Card0.Amixer.info:
 Card hw:0 'Intel'/'HDA Intel at 0xdc524000 irq 16'
   Mixer name : 'Analog Devices AD1981'
   Components : 'HDA:11d41981,103c30d7,00100200 HDA:11c11040,103c1378,00100200'
   Controls : 11
   Simple ctrls : 9
Date: Wed Jun 23 00:10:36 2010
ErrorMessage: subprocess installed post-installation script returned error exit status 2
LiveMediaBuild: Ubuntu 10.04 LTS "Lucid Lynx" - Release i386 (20100429)
MachineType: Hewlett-Packard HP Compaq 6820s (GR712EA)
ProcCmdLine: noprompt cdrom-detect/try-usb=true persistent file=/cdrom/preseed/hostname.seed boot=casper initrd=/casper/initrd.lz splash -- BOOT_IMAGE=/casper/vmlinuz
RelatedPackageVersions: linux-firmware 1.34
RfKill:
 1: phy0: Wireless LAN
  Soft blocked: no
  Hard blocked: yes
SourcePackage: linux
Title: package linux-image-2.6.32-22-generic 2.6.32-22.36 failed to install/upgrade: subprocess installed post-installation script returned error exit status 2
dmi.bios.date: 01/11/2008
dmi.bios.vendor: Hewlett-Packard
dmi.bios.version: 68MDD Ver. F.09
dmi.board.name: 30D7
dmi.board.vendor: Hewlett-Packard
dmi.board.version: KBC Version 83.12
dmi.chassis.asset.tag: CNU7381SC8
dmi.chassis.type: 10
dmi.chassis.vendor: Hewlett-Packard
dmi.modalias: dmi:bvnHewlett-Packard:bvr68MDDVer.F.09:bd01/11/2008:svnHewlett-Packard:pnHPCompaq6820s(GR712EA):pvrF.09:rvnHewlett-Packard:rn30D7:rvrKBCVersion83.12:cvnHewlett-Packard:ct10:cvr:
dmi.product.name: HP Compaq 6820s (GR712EA)
dmi.product.version: F.09
dmi.sys.vendor: Hewlett-Packard

[Brian Murray (brian-murray)]

Thank you for taking the time to report this bug and helping to make Ubuntu better. This particular bug has already been reported and is a duplicate of bug 557023, so it is being marked as such. Please look at the other bug report to see if there is any missing information that you can provide, or to see if there is a workaround for the bug. Additionally, any further discussion regarding the bug should occur in the other report. Please continue to report any other bugs you may find.