Comment 4 for bug 584992

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Jean-Baptiste Lallement (jibel) wrote : Re: package fglrx 2:8.723.1-0ubuntu3 failed to install/upgrade: subprocess installed post-installation script returned error exit status 1

Thanks for the output.

The error is
update-initramfs: deferring update (trigger activated)
lzma: Cannot allocate memory

I'm reaffecting to initramfs-tools but this can as well be a problem with lzma.
I noticed that there is no swap space available. Assuming it is a out of memory issue, are you able to setup a swap space on another usb disk and see if it occurs again ?