nvidia-common postinstall script breaks linux-image-2.6.27-4 upgrade

Binary package hint: linux-image-2.6.27-4-generic

Attempted to upgrade my system but could not properly. One of the packages linux-image-2.6.27-4 fails to configure correctly.

Expected: Upgrade to the new linux-image to configure successfully.
Actual Result: Post-install configuration attempts to run but fails with the following message:

Setting up linux-image-2.6.27-4-generic (2.6.27-4.6) ...
Running depmod.
update-initramfs: Generating /boot/initrd.img-2.6.27-4-generic
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-2.6.27-4-generic
Found kernel: /boot/last-good-boot/vmlinuz
Found kernel: /boot/vmlinuz-2.6.27-3-generic
Found kernel: /boot/vmlinuz-2.6.27-2-generic
Found kernel: /boot/memtest86+.bin
Updating /boot/grub/menu.lst ... done

Examining /etc/kernel/postinst.d.
run-parts: executing /etc/kernel/postinst.d/dkms
 * Running DKMS auto installation service for kernel 2.6.27-4-generic
 * nvidia (177.76)...nvidia (177.76): Already installed on this kernel.
                                                                                                                                                                                                           [ OK ]
run-parts: executing /etc/kernel/postinst.d/nvidia-common
run-parts: /etc/kernel/postinst.d/nvidia-common exited with return code 10
Failed to process /etc/kernel/postinst.d at /var/lib/dpkg/info/linux-image-2.6.27-4-generic.postinst line 1002.
dpkg: error processing linux-image-2.6.27-4-generic (--configure):
 subprocess post-installation script returned error exit status 2
dpkg: dependency problems prevent configuration of linux-headers-generic:
 linux-headers-generic depends on linux-headers-2.6.27-4-generic; however:
  Package linux-headers-2.6.27-4-generic is not configured yet.
dpkg: error processing linux-headers-generic (--configure):
 dependency problems - leaving unconfigured
dpkg: dependency problems prevent configuration of linux-restricted-modules-2.6.27-4-generic:
 linux-restricted-modules-2.6.27-4-generic depends on linux-image-2.6.27-4-generic; however:
  Package linux-image-2.6.27-4-generic is not configured yet.
dpkg: error processing linux-restricted-modules-2.6.27-4-generic (--configure):
 dependency problems - leaving unconfigured
dpkg: dependency problems prevent configuration of linux-image-generic:
 linux-image-generic depends on linux-image-2.6.27-4-generic; however:
  Package linux-image-2.6.27-4-generic is not configured yet.
dpkg: error processing linux-image-generic (--configure):
 dependency problems - leaving unconfigured
dpkg: dependency problems prevent configuration of linux-restricted-modules-generic:
 linux-restricted-modules-generic depends on linux-restricted-modules-2.6.27-4-generic; however:
  Package linux-restricted-modules-2.6.27-4-generic is not configured yet.
dpkg: error processing linux-restricted-modules-generic (--configure):
 dependency problems - leaving unconfigured
dpkg: dependency problems prevent configuration of linux-generic:
 linux-generic depends on linux-image-generic (= 2.6.27.4.4); however:
  Package linux-image-generic is not configured yet.
 linux-generic depends on linux-restricted-modules-generic (= 2.6.27.4.4); however:
  Package linux-restricted-modules-generic is not configured yet.
dpkg: error processing linux-generic (--configure):
 dependency problems - leaving unconfigured
Errors were encountered while processing:
 linux-headers-2.6.27-4-generic
 linux-image-2.6.27-4-generic
 linux-headers-generic
 linux-restricted-modules-2.6.27-4-generic
 linux-image-generic
 linux-restricted-modules-generic
 linux-generic
Reading package lists... Done
Building dependency tree
Reading state information... Done
Reading extended state information
Initializing package states... Done
Writing extended state information... Done

Steps done reproduce bug:
1.) sudo aptitude update
2.) sudo aptitude full-upgrade

Or alternatively:
sudo dpkg -a --configure

System information:
Description: Ubuntu intrepid (development branch)
Release: 8.10