Comment 2 for bug 775803

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Daniel Letzeisen (dtl131) wrote : Re: package linux-image-2.6.38-9-generic 2.6.38-9.43 failed to install/upgrade: run-parts: /etc/kernel/postinst.d/nvidia-common exited with return code 127

The nvidia-common script error is caused by:
/usr/bin/python: error while loading shared libraries: /lib/i386-linux-gnu/libz.so.1: invalid ELF header

Other scripts also fail with that error in your log, so this issue is not specific to nvidia-common package. Reassigning to zlib1g.

I suggest you reinstall zlib1g to rule out the possibility of a corrupt file.