Comment 172 for bug 798414

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Thomas Schweikle (tps) wrote : Re: update-initramfs should produce a more helpful error message when there isn't enough free space

Ubuntu keeps to many old kernel-images and initrd within /boot. Space is exausted and it fails to delete old unused kernels before creating a new initrd failing building an initrd for the newly installed kernel.

A workaround is to delete all old unused kernels and then try it again. It will succeed.