Comment 3 for bug 769116

I have been having the same problem. I have found this bug via http://ubuntuforums.org/showthread.php?p=10813471#post10813471

My problem differs a little bit, I'm seeing a message that says:
/usr/sbin/grub-probe: error: cannot find a device for / (is /dev mounted?).

Here is my full output:

root@ubuntu:/# sudo apt-get install -f
sudo: unable to resolve host ubuntu
Reading package lists... Done
Building dependency tree
Reading state information... Done
0 upgraded, 0 newly installed, 0 to remove and 0 not upgraded.
4 not fully installed or removed.
After this operation, 0B of additional disk space will be used.
Setting up linux-image-2.6.32-31-generic (2.6.32-31.61) ...
Running depmod.
update-initramfs: Generating /boot/initrd.img-2.6.32-31-generic
Running postinst hook script /usr/sbin/update-grub.
/usr/sbin/grub-probe: error: cannot find a device for / (is /dev mounted?).
User postinst hook script [/usr/sbin/update-grub] exited with value 1
dpkg: error processing linux-image-2.6.32-31-generic (--configure):
 subprocess installed post-installation script returned error exit status 1
Setting up linux-image-2.6.32-31-generic-pae (2.6.32-31.61) ...
Running depmod.
update-initramfs: Generating /boot/initrd.img-2.6.32-31-generic-pae
Running postinst hook script /usr/sbin/update-grub.
/usr/sbin/grub-probe: error: cannot find a device for / (is /dev mounted?).
User postinst hook script [/usr/sbin/update-grub] exited with value 1
dpkg: error processing linux-image-2.6.32-31-generic-pae (--configure):
 subprocess installed post-installation script returned error exit status 1
dpkg: dependency problems prevent configuration of linux-image-generic:
 linux-image-generic depends on linux-image-2.6.32-31-generic; however:
  Package linux-image-2.6.32-31-generic is not configured yet.
dpkg: error processing linux-image-generic (--configure):
 dependency problems - leaving unconfigured
dpkg: dependency problems prevent configuration of linux-generic:
 linux-generic depends on linux-image-generic (= 2.6.32.31.37); however:
  Package linux-image-generic is not configured yet.
dpkg: error processing linux-generic (--configure):
 dependency problems - leaving unconfigured
No apport report written because the error message indicates its a followup error from a previous failure.
                          No apport report written because MaxReports is reached already
        Errors were encountered while processing:
 linux-image-2.6.32-31-generic
 linux-image-2.6.32-31-generic-pae
 linux-image-generic
 linux-generic
E: Sub-process /usr/bin/dpkg returned an error code (1)