package linux-image-2.6.27-11-generic 2.6.27-11.22 failed to install/upgrade: subprocess post-installation script returned error exit status 2

I'm getting the same error with today's update to 2.6.27-11.25 on both generic and server. I can't copy the error so I'll sum it up:
...
Fatal: Bios device code 0x80 is being used by two disks
      /dev/sdc (0x0820) and /dev/sda (0x0800)
Failed to create initrd image.
...

sda is my boot disk and sdc is an audio player that's always plugged in (has never been an issue before). I did plug in another USB flash disk during the update (not sda nor sdc) ... might that have caused an issue?

At this point, I'm concerned that a reboot might break the system since subsequent reinstallations continue to fail (even with the extra drives removed).

I just tried to update to the following day's kernel: 2.6.27-11.26 and ran into the same issue.

The first error I spot in the synaptic terminal is:

ERROR lilo fails for new /boot/initrd.img-2.6.27-11-generic:
...

And now, instead of the BIOS error, I get:

Fatal: raid_setup: stat("/dev/sda")

I'm not using any software raid or fake raid but do have bonafide hardware raid card. Haven't had any issues duing the last 10 kernel updates or so.

Also worth mentioning that I run LILO and use the server kernel so I can enable PAE. Again, updating this hasn't been an issue before.

JFMurphy,

I believe the bug you've reported here is a duplicate of bug 193439 so I am marking it as such. Please continue to track this issue at that report.

@jay armstrong, I'm not positive the bug you are seeing is the same without seeing the contents of your DpkgTerminalLog.txt file. It if is not the same issue, please open a new bug report. Thanks.