I experienced this issue on the last upgrade, and the above trick worked, but not on this latest one.  Output below, any ideas please?

bedlore@hyssop:~$ sudo apt-get install -f linux-image-3.2.0-26-generic
Reading package lists... Done
Building dependency tree       
Reading state information... Done
linux-image-3.2.0-26-generic is already the newest version.
0 upgraded, 0 newly installed, 0 to remove and 0 not upgraded.
2 not fully installed or removed.
After this operation, 0 B of additional disk space will be used.
Do you want to continue [Y/n]? y
Setting up linux-image-3.2.0-26-generic (3.2.0-26.41) ...
Running depmod.
update-initramfs: deferring update (hook will be called later)
Examining /etc/kernel/postinst.d.
run-parts: executing /etc/kernel/postinst.d/dkms 3.2.0-26-generic /boot/vmlinuz-3.2.0-26-generic
run-parts: executing /etc/kernel/postinst.d/initramfs-tools 3.2.0-26-generic /boot/vmlinuz-3.2.0-26-generic
update-initramfs: Generating /boot/initrd.img-3.2.0-26-generic
Warning: No support for locale: en_AU.utf8
W: mdadm: /etc/mdadm/mdadm.conf defines no arrays.
run-parts: executing /etc/kernel/postinst.d/pm-utils 3.2.0-26-generic /boot/vmlinuz-3.2.0-26-generic
run-parts: executing /etc/kernel/postinst.d/update-notifier 3.2.0-26-generic /boot/vmlinuz-3.2.0-26-generic
run-parts: executing /etc/kernel/postinst.d/zz-extlinux 3.2.0-26-generic /boot/vmlinuz-3.2.0-26-generic
P: Checking for EXTLINUX directory... found.
P: Writing config for /boot/vmlinuz-3.2.0-26-generic...
P: Writing config for /boot/vmlinuz-3.2.0-25-generic...
P: Writing config for /boot/vmlinuz-3.2.0-24-generic...
P: Writing config for /boot/vmlinuz-3.2.0-23-generic...
P: Writing config for /boot/vmlinuz-3.0.0-17-generic...
P: Writing config for /boot/vmlinuz-3.0.0-16-generic...
P: Writing config for /boot/vmlinuz-3.0.0-15-generic...
P: Writing config for /boot/vmlinuz-3.0.0-14-generic...
P: Writing config for /boot/vmlinuz-3.0.0-12-generic...
P: Installing debian theme... done.
run-parts: executing /etc/kernel/postinst.d/zz-update-grub 3.2.0-26-generic /boot/vmlinuz-3.2.0-26-generic
Generating grub.cfg ...
/etc/grub.d/10_linux: 24: .: Can't open /usr/share/grub/grub-mkconfig_lib
run-parts: /etc/kernel/postinst.d/zz-update-grub exited with return code 2
Failed to process /etc/kernel/postinst.d at /var/lib/dpkg/info/linux-image-3.2.0-26-generic.postinst line 1010.
dpkg: error processing linux-image-3.2.0-26-generic (--configure):
 subprocess installed post-installation script returned error exit status 2
dpkg: dependency problems prevent configuration of linux-image-generic:
 linux-image-generic depends on linux-image-3.2.0-26-generic; however:
  Package linux-image-3.2.0-26-generic is not configured yet.
dpkg: error processing linux-image-generic (--configure):
 dependency problems - leaving unconfigured
No apport report written because the error message indicates its a followup error from a previous failure.
                                                                                                          Errors were encountered while processing:
 linux-image-3.2.0-26-generic
 linux-image-generic
E: Sub-process /usr/bin/dpkg returned an error code (1)
bedlore@hyssop:~$