package linux-image-2.6.32-33-generic 2.6.32-33.72 failed to install/upgrade: subprocess installed post-installation script returned error exit status 2

[Rudresh S J]

Ubuntu version 10.04.3
Installed on Flash drive using software from pendrivelinux.com

After installation, performing an update from System>Administration>Update Manager, led to this error message.

Problem can be reproduced when running "sudo apt-get upgrade" in terminal. Please refer below for full error information in terminal:

ubuntu@ubuntu:~$ sudo apt-get upgrade
Reading package lists... Done
Building dependency tree
Reading state information... Done
0 upgraded, 0 newly installed, 0 to remove and 0 not upgraded.
1 not fully installed or removed.
After this operation, 0B of additional disk space will be used.
Do you want to continue [Y/n]? Y
Setting up linux-image-2.6.32-33-generic (2.6.32-33.72) ...
Running depmod.
update-initramfs: Generating /boot/initrd.img-2.6.32-33-generic
lzma: Encoder error: -2147467259
Failed to create initrd image.
dpkg: error processing linux-image-2.6.32-33-generic (--configure):
 subprocess installed post-installation script returned error exit status 2
Errors were encountered while processing:
 linux-image-2.6.32-33-generic
E: Sub-process /usr/bin/dpkg returned an error code (1)
ubuntu@ubuntu:~$

result of running "cat /proc/version_signature" :
Ubuntu 2.6.32-33.70-generic 2.6.32.41+drm33.18

please find attached result of running "sudo lspci -vnvn"

ProblemType: Package
DistroRelease: Ubuntu 10.04
Package: linux-image-2.6.32-33-generic 2.6.32-33.72
Regression: Yes
Reproducible: Yes
ProcVersionSignature: Ubuntu 2.6.32-33.70-generic 2.6.32.41+drm33.18
Uname: Linux 2.6.32-33-generic i686
AlsaVersion: Advanced Linux Sound Architecture Driver Version 1.0.21.
Architecture: i386
ArecordDevices:
 **** List of CAPTURE Hardware Devices ****
 card 0: Intel [HDA Intel], device 0: ALC888 Analog [ALC888 Analog]
   Subdevices: 1/1
   Subdevice #0: subdevice #0
AudioDevicesInUse:
 USER PID ACCESS COMMAND
 /dev/snd/controlC0: ubuntu 3833 F.... pulseaudio
CRDA: Error: [Errno 2] No such file or directory
Card0.Amixer.info:
 Card hw:0 'Intel'/'HDA Intel at 0xfeaf8000 irq 22'
   Mixer name : 'Intel G45 DEVCTG'
   Components : 'HDA:10ec0888,10ec0888,00100001 HDA:80862802,80860101,00100000'
   Controls : 20
   Simple ctrls : 11
Date: Fri Aug 12 14:14:03 2011
ErrorMessage: subprocess installed post-installation script returned error exit status 2
IwConfig:
 lo no wireless extensions.

 eth0 no wireless extensions.

 eth1 no wireless extensions.
LiveMediaBuild: Ubuntu 10.04.3 LTS "Lucid Lynx" - Release i386 (20110720.1)
MachineType: To Be Filled By O.E.M. To Be Filled By O.E.M.
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 1.34.7
RfKill:

SourcePackage: linux
Title: package linux-image-2.6.32-33-generic 2.6.32-33.72 failed to install/upgrade: subprocess installed post-installation script returned error exit status 2
dmi.bios.date: 05/27/2011
dmi.bios.vendor: American Megatrends Inc.
dmi.bios.version: 080016
dmi.board.asset.tag: To Be Filled By O.E.M.
dmi.board.name: To be filled by O.E.M.
dmi.board.vendor: To be filled by O.E.M.
dmi.board.version: To be filled by O.E.M.
dmi.chassis.asset.tag: To Be Filled By O.E.M.
dmi.chassis.type: 3
dmi.chassis.vendor: To Be Filled By O.E.M.
dmi.chassis.version: To Be Filled By O.E.M.
dmi.modalias: dmi:bvnAmericanMegatrendsInc.:bvr080016:bd05/27/2011:svnToBeFilledByO.E.M.:pnToBeFilledByO.E.M.:pvrToBeFilledByO.E.M.:rvnTobefilledbyO.E.M.:rnTobefilledbyO.E.M.:rvrTobefilledbyO.E.M.:cvnToBeFilledByO.E.M.:ct3:cvrToBeFilledByO.E.M.:
dmi.product.name: To Be Filled By O.E.M.
dmi.product.version: To Be Filled By O.E.M.
dmi.sys.vendor: To Be Filled By O.E.M.