Comment 6 for bug 129828

Issue is still present, here are the steps to reproduce:
1) Open /etc/kernel-img.conf
2) Insert ramdisk = /usr/sbin/mkinitrd.yaird, save and exit
3) Run dpkg-reconfigure linux-image-`uname -r` or install a new kernel
You will get this:
root@sauron:~# dpkg-reconfigure linux-image-`uname -r`
Running depmod.
mkinitrd.yaird: invalid option -- u
Terminating...
Failed to create initrd image.
root@sauron:~#

After applying the new debdiff, here is the output:
root@sauron:~# dpkg-reconfigure linux-image-`uname -r`
Running depmod.
Not updating initrd symbolic links since we are being updated/reinstalled
(2.6.22-10.30 was configured last, according to dpkg)
Not updating image symbolic links since we are being updated/reinstalled
(2.6.22-10.30 was configured last, according to dpkg)
Running postinst hook script /sbin/update-grub.
Searching for GRUB installation directory ... found: /boot/grub
Searching for default file ... found: /boot/grub/default
Testing for an existing GRUB menu.lst file ... found: /boot/grub/menu.lst
Searching for splash image ... none found, skipping ...
Found kernel: /boot/vmlinuz-2.6.22-10-generic
Found kernel: /boot/vmlinuz-2.6.22-9-generic
Found kernel: /boot/vmlinuz-2.6.22-4-generic
Found kernel: /boot/memtest86+.bin
Updating /boot/grub/menu.lst ... done
root@sauron:~#
Ramdisk has been succesfully created and system boots correctly.