I have just finished a succesfully upgrade from 10.04.4 to 12.04.1 on my remote server. After reboot, I have verified that it is still booting from the old kernel:
$ uname -a
Linux socrates 2.6.32-41-generic-pae #94-Ubuntu SMP Fri Jul 6 17:08:20 UTC 2012 i686 i686 i386 GNU/Linux
I have also run update-grub:
$ sudo 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-3.2.0-29-generic-pae
Found kernel: /boot/vmlinuz-2.6.32-41-generic-pae
Found GRUB 2: /boot/grub/core.img
Found kernel: /boot/memtest86+.bin
Updating /boot/grub/menu.lst ... done
But it is still booting from the old one... I have verified that I am still running grub Legacy:
dpkg -l grub* | grep ii
ii grub 0.97-29ubuntu66 GRand Unified Bootloader (Legacy version)
ii grub-common 1.99-21ubuntu3.1 GRand Unified Bootloader (common files)