Comment 12 for bug 1029790

tolostoi, as per the article section https://wiki.ubuntu.com/Kernel/KernelBisection#Before_Starting_to_Commit_Bisect_Your_Kernel_Regression :
"One would want to test each one until you have the problematic kernel immediately following the kernel that works."
In your case, 3.4.0-5-generic works, but 3.5.0-16-generic does not. However, these two kernels do not immediately follow one another in version number. As per https://launchpad.net/ubuntu/quantal/+source/linux we have the following kernels between the two:
3.4.0-5.11
3.5.0-1.1
3.5.0-1.1
3.5.0-2.2
3.5.0-2.2
3.5.0-3.3
3.5.0-3.3
3.5.0-4.4
3.5.0-4.4
3.5.0-5.5
3.5.0-5.5
3.5.0-6.6
3.5.0-6.6
3.5.0-7.7
3.5.0-7.7
3.5.0-8.8
3.5.0-8.8
3.5.0-9.9
3.5.0-9.9
3.5.0-10.10
3.5.0-10.10
3.5.0-11.11
3.5.0-11.11
3.5.0-12.12
3.5.0-12.12
3.5.0-13.13
3.5.0-13.13
3.5.0-13.14
3.5.0-14.15
3.5.0-14.15
3.5.0-14.16
3.5.0-14.16
3.5.0-14.17
3.5.0-14.18
3.5.0-14.19
3.5.0-15.20
3.5.0-15.20
3.5.0-15.21
3.5.0-15.22
3.5.0-15.23
3.5.0-16.24
3.5.0-16.24
3.5.0-16.25

For example, if you found that the first problematic kernel was 3.5.0-1.1, then the 3.4.0-5 is the last kernel that works, as 3.5.0-1.1 comes immediately after 3.4.0-5, then you could continue following the article.