package grub-pc 1.98-1ubuntu7 failed to install/upgrade: subprocess installed post-installation script returned error exit status 127

[David Pearson]

Binary package hint: grub2

Wubi 10.04 64 install on Presario CQ61 running W7 64.
Fails to update kernel quoting this error on grub-pc (which Wubi does not use?)

ProblemType: Package
DistroRelease: Ubuntu 10.04
Package: grub-pc 1.98-1ubuntu7
ProcVersionSignature: Ubuntu 2.6.32-22.36-generic 2.6.32.11+drm33.2
Uname: Linux 2.6.32-22-generic x86_64
NonfreeKernelModules: fglrx
Architecture: amd64
Date: Wed Jul 21 09:49:29 2010
ErrorMessage: subprocess installed post-installation script returned error exit status 127
InstallationMedia: Ubuntu 10.04 LTS "Lucid Lynx" - Release amd64 (20100429)
SourcePackage: grub2
Title: package grub-pc 1.98-1ubuntu7 failed to install/upgrade: subprocess installed post-installation script returned error exit status 127