After installing latest updates I can't set screen resolution higher than 1024x768; every time after the boot I get a message

Could not apply the stored configuration for the monitors

(Note: removing ~/.config/monitors.xml stopped the message, but not the problem)

I can boot with 3.2.0-25 and the graphics look normal. Here's what I have in /var/log/apt/term.log (excerpt):

Setting up linux-image-3.2.0-26-generic (3.2.0-26.41) ...
Running depmod.
update-initramfs: deferring update (hook will be called later)
Examining /etc/kernel/postinst.d.
run-parts: executing /etc/kernel/postinst.d/dkms 3.2.0-26-generic /boot/vmlinuz-3.2.0-26-generic
Error! Problems with depmod detected.  Automatically uninstalling this module.
DKMS: Install Failed (depmod problems).  Module rolled back to built state.
run-parts: executing /etc/kernel/postinst.d/initramfs-tools 3.2.0-26-generic /boot/vmlinuz-3.2.0-26-generic
update-initramfs: Generating /boot/initrd.img-3.2.0-26-generic
run-parts: executing /etc/kernel/postinst.d/pm-utils 3.2.0-26-generic /boot/vmlinuz-3.2.0-26-generic
run-parts: executing /etc/kernel/postinst.d/update-notifier 3.2.0-26-generic /boot/vmlinuz-3.2.0-26-generic
run-parts: executing /etc/kernel/postinst.d/zz-update-grub 3.2.0-26-generic /boot/vmlinuz-3.2.0-26-generic
Generating grub.cfg ...
Found linux image: /boot/vmlinuz-3.2.0-26-generic
Found initrd image: /boot/initrd.img-3.2.0-26-generic
Found linux image: /boot/vmlinuz-3.2.0-25-generic
Found initrd image: /boot/initrd.img-3.2.0-25-generic
Found linux image: /boot/vmlinuz-3.2.0-24-generic
Found initrd image: /boot/initrd.img-3.2.0-24-generic
Found linux image: /boot/vmlinuz-3.2.0-23-generic
Found initrd image: /boot/initrd.img-3.2.0-23-generic
Found linux image: /boot/vmlinuz-3.0.0-17-generic
Found initrd image: /boot/initrd.img-3.0.0-17-generic
Found memtest86+ image: /boot/memtest86+.bin

I went to "additional drivers" and saw some updates available there, but an attempt to install them failed, leaving the following in /var/log/jockey.log (long log, pasted here). The full log won't fit in the question, so I'm showing

$ fgrep 'ERROR' /var/log/jockey.log
2012-06-30 17:29:57,897 WARNING: modinfo for module vmxnet failed: ERROR: modinfo: could not find module vmxnet
2012-06-30 17:29:57,937 WARNING: modinfo for module wl failed: ERROR: modinfo: could not find module wl
2012-06-30 17:29:58,072 WARNING: modinfo for module nvidia_96 failed: ERROR: modinfo: could not find module nvidia_96
2012-06-30 17:29:58,240 WARNING: modinfo for module nvidia_current failed: ERROR: modinfo: could not find module nvidia_current
2012-06-30 17:29:58,293 WARNING: modinfo for module nvidia_current_updates failed: ERROR: modinfo: could not find module nvidia_current_updates
2012-06-30 17:29:58,351 WARNING: modinfo for module nvidia_173_updates failed: ERROR: modinfo: could not find module nvidia_173_updates
2012-06-30 17:29:58,385 WARNING: modinfo for module nvidia_173 failed: ERROR: modinfo: could not find module nvidia_173
2012-06-30 17:29:58,420 WARNING: modinfo for module nvidia_96_updates failed: ERROR: modinfo: could not find module nvidia_96_updates
2012-06-30 17:29:58,455 WARNING: modinfo for module ath_pci failed: ERROR: modinfo: could not find module ath_pci
2012-06-30 17:29:58,478 WARNING: modinfo for module fglrx_updates failed: ERROR: modinfo: could not find module fglrx_updates
2012-06-30 17:29:58,531 WARNING: modinfo for module fglrx failed: ERROR: modinfo: could not find module fglrx
2012-06-30 17:29:58,588 WARNING: modinfo for module omapdrm_pvr failed: ERROR: modinfo: could not find module omapdrm_pvr
2012-06-30 17:29:59,537 WARNING: modinfo for module nvidia_current failed: ERROR: modinfo: could not find module nvidia_current
2012-06-30 17:29:59,613 WARNING: modinfo for module nvidia_173_updates failed: ERROR: modinfo: could not find module nvidia_173_updates
2012-06-30 17:29:59,686 WARNING: modinfo for module nvidia_173 failed: ERROR: modinfo: could not find module nvidia_173
2012-06-30 17:29:59,764 WARNING: modinfo for module nvidia_current_updates failed: ERROR: modinfo: could not find module nvidia_current_updates
2012-06-30 17:30:29,544 WARNING: modinfo for module nvidia_current_updates failed: ERROR: modinfo: could not find module nvidia_current_updates
2012-06-30 17:30:29,545 ERROR: XorgDriverHandler.enable(): package or module not installed, aborting

I'm not sure if it's a bug, as the first log shows some errors. What can I try?