package linux-image-2.6.32-26-generic (not installed) failed to install/upgrade:

I started with Ubuntu 9.10. I tried updating to 10.04, and that's when the issues started. I'm now running 10.04, but it isn't operating like it should be. During the upgrade process, several errors, this one included, came up.

ProblemType: Package
DistroRelease: Ubuntu 10.04
Package: linux-image-2.6.32-26-generic (not installed)
Regression: Yes
Reproducible: Yes
ProcVersionSignature: Ubuntu 2.6.31-22.68-generic
Uname: Linux 2.6.31-22-generic i686
AlsaVersion: Advanced Linux Sound Architecture Driver Version 1.0.20.
AplayDevices:
 **** List of PLAYBACK Hardware Devices ****
 card 0: I82801AAICH [Intel 82801AA-ICH], device 0: Intel ICH [Intel 82801AA-ICH]
   Subdevices: 1/1
   Subdevice #0: subdevice #0
Architecture: i386
AudioDevicesInUse:
 USER PID ACCESS COMMAND
 /dev/snd/controlC0: chris 4202 F.... pulseaudio
CRDA: Error: [Errno 2] No such file or directory
Card0.Amixer.info:
 Card hw:0 'I82801AAICH'/'Intel 82801AA-ICH with STAC9700,83,84 at irq 5'
   Mixer name : 'SigmaTel STAC9700,83,84'
   Components : 'AC97a:83847600'
   Controls : 34
   Simple ctrls : 24
CurrentDmesg:
 [ 53.340135] eth0: no IPv6 routers present
 [ 1110.007827] Clocksource tsc unstable (delta = 78449524 ns)
Date: Fri Nov 26 00:07:00 2010
ErrorMessage:
 ErrorMessage: no package named `linux-image-2.6.32-26-generic' is installed, cannot configure
HibernationDevice: RESUME=UUID=388115be-9846-45ba-b5d2-8756b3c48e3c
InstallationMedia: Ubuntu 9.10 "Karmic Koala" - Release i386 (20091028.5)
IwConfig:
 lo no wireless extensions.

 eth0 no wireless extensions.
Lsusb:
 Bus 002 Device 002: ID 80ee:0021
 Bus 002 Device 001: ID 1d6b:0001 Linux Foundation 1.1 root hub
 Bus 001 Device 001: ID 1d6b:0002 Linux Foundation 2.0 root hub
MachineType: innotek GmbH VirtualBox
ProcCmdLine: BOOT_IMAGE=/boot/vmlinuz-2.6.31-22-generic root=UUID=7067875f-fd20-4d99-892b-c87bcd1c6378 ro quiet splash
RelatedPackageVersions: linux-firmware 1.34.1
RfKill:

SourcePackage: linux
Title: package linux-image-2.6.32-26-generic (not installed) failed to install/upgrade:
WifiSyslog:

dmi.bios.date: 12/01/2006
dmi.bios.vendor: innotek GmbH
dmi.bios.version: VirtualBox
dmi.modalias: dmi:bvninnotekGmbH:bvrVirtualBox:bd12/01/2006:svninnotekGmbH:pnVirtualBox:pvr1.2:
dmi.product.name: VirtualBox
dmi.product.version: 1.2
dmi.sys.vendor: innotek GmbH