Same problem here. 

cat /etc/lsb-release 
DISTRIB_ID=Ubuntu
DISTRIB_RELEASE=8.10
DISTRIB_CODENAME=intrepid
DISTRIB_DESCRIPTION="Ubuntu 8.10"

uname -a
Linux jambo 2.6.27-7-generic #1 SMP Tue Nov 4 19:33:20 UTC 2008 i686 GNU/Linux

ii  linux-firmware                            1.2                                   Firmware for Linux kernel drivers
ii  linux-headers-2.6.27-7                    2.6.27-7.16                           Header files related to Linux kernel version
ii  linux-headers-2.6.27-7-generic            2.6.27-7.16                           Linux kernel headers for version 2.6.27 on x
ii  linux-headers-2.6.27.2                    2.6.27.2.HM64                         Header files related to Linux kernel, specif
ii  linux-headers-generic                     2.6.27.7.11                           Generic Linux kernel headers
ii  linux-image-2.6.27-7-generic              2.6.27-7.16                           Linux kernel image for version 2.6.27 on x86
ii  linux-image-generic                       2.6.27.7.11                           Generic Linux kernel image
ii  linux-libc-dev                            2.6.27-7.16                           Linux Kernel Headers for development
ii  linux-restricted-modules-common           2.6.27-7.12                           Non-free Linux 2.6.27 modules helper script
ii  linux-sound-base                          1.0.17.dfsg-2ubuntu1                  base package for ALSA and OSS sound systems
ii  linux-source                              2.6.27.7.11                           Linux kernel source with Ubuntu patches
ii  linux-source-2.6.27                       2.6.27-7.16                           Linux kernel source for version 2.6.27 with 

ii  nvidia-173-modaliases                     173.14.12-1-0ubuntu4                  Modaliases for the NVIDIA binary X.Org drive
ii  nvidia-177-kernel-source                  177.80-0ubuntu2                       NVIDIA binary kernel module source
ii  nvidia-177-modaliases                     177.80-0ubuntu2                       Modaliases for the NVIDIA binary X.Org drive
ii  nvidia-71-modaliases                      71.86.04-0ubuntu10                    Modaliases for the NVIDIA binary X.Org drive
ii  nvidia-96-modaliases                      96.43.09-0ubuntu1                     Modaliases for the NVIDIA binary X.Org drive
ii  nvidia-common                             0.2.4                                 Find obsolete NVIDIA drivers
ii  nvidia-glx-177                            177.80-0ubuntu2                       NVIDIA binary Xorg driver
ii  nvidia-settings                           177.78-0ubuntu2                       Tool of configuring the NVIDIA graphics driv


>----<


cd /usr/src/
tar xjf linux-source-2.6.27.tar.bz2 
ln -s linux-source-2.6.27 linux
cd linux
cp /boot/config-2.6.27-7-generic .config
make menuconfig
# CONFIG_HIGHMEM64G=y
make-kpkg clean
make-kpkg --initrd --revision 2.6.27.2.HM64 binary
cd ..
dpkg -i linux-image-2.6.27.2_2.6.27.2.HM64_i386.deb linux-headers-2.6.27.2_2.6.27.2.HM64_i386.deb
...
Examining /etc/kernel/postinst.d.
run-parts: executing /etc/kernel/postinst.d/dkms
run-parts: executing /etc/kernel/postinst.d/nvidia-common
run-parts: /etc/kernel/postinst.d/nvidia-common exited with return code 20
Failed to process /etc/kernel/postinst.d at /var/lib/dpkg/info/linux-image-2.6.27.2.postinst line 1181.
dpkg: Fehler beim Bearbeiten von linux-image-2.6.27.2 (--install):
 Unterprozess post-installation script gab den Fehlerwert 2 zurück
Richte linux-headers-2.6.27.2 ein (2.6.27.2.HM64) ...

Fehler traten auf beim Bearbeiten von:
 linux-image-2.6.27.2