Comment 77 for bug 1013183

3.2.0-27 is working with sound! Sorry for the noise about my package management problems. I would consider this fixed.

Read this if you're curious what happened with my upgrade:
Somehow during my testing of various kernel ppas, I ended up with the "linux-image" package getting removed (even though 3.2.0-24 specific kernel image was installed). So it was not updating linux-image automatically to newer versions, since it was technically not installed. I was able to see this when I searched in Synaptic Package Manager for for "linux-image", and 3.2.0-27 did in fact appear there.