00:1b.0 Audio device: Intel Corporation 82801G (ICH7 Family) High Definition Audio Controller (rev 01)
alsamixer: function snd_ctl_open failed for default: No such file or directory
aplay: device_list:223: no soundcards found...
After poking around I discovered that the updater did not update /boot/grub/menu.lst to use the latest installed kernel.
You can fix this automatically by running update-grub. Choose install package maintainer's version if you don't have any custom entries.