Comment 2 for bug 430694

Here, my work around for the issue has been to set the following in /etc/initramfs-tools/modules:

# List of modules that you want to include in your initramfs.
#
# Syntax: module_name [args ...]
#
# You must run update-initramfs(8) to effect this change.
#
# Examples:
#
# raid1
# sd_mod
intel_agp
i915 modeset=1

Once this has been configured, you need to run:

sudo dpkg-reconfigure linux-image-2.6.31-10-generic