build of nvidia kernel module fails

Binary package hint: nvidia-96-kernel-source

When installing nvidia-96-kernel-source (via apt-get or "Hardware Drivers" manager), building of the kernel module (nvidia.ko) fails (log attached).

$sudo apt-get install nvidia-96-kernel-source
Reading package lists... Done
Building dependency tree
Reading state information... Done
The following extra packages will be installed:
  nvidia-glx-96
The following NEW packages will be installed:
  nvidia-96-kernel-source nvidia-glx-96
0 upgraded, 2 newly installed, 0 to remove and 0 not upgraded.
Need to get 0B/5680kB of archives.
After this operation, 18.3MB of additional disk space will be used.
Do you want to continue [Y/n]?
Selecting previously deselected package nvidia-96-kernel-source.
(Reading database ... 86135 files and directories currently installed.)
Unpacking nvidia-96-kernel-source (from .../nvidia-96-kernel-source_96.43.05-0ubuntu10_i386.deb) ...
Selecting previously deselected package nvidia-glx-96.
Unpacking nvidia-glx-96 (from .../nvidia-glx-96_96.43.05-0ubuntu10_i386.deb) ...
Processing triggers for man-db ...
Setting up nvidia-96-kernel-source (96.43.05-0ubuntu10) ...
Removing all DKMS Modules
Done.
Adding Module to DKMS build system
driver version= 96.43.05
Doing initial module build

Error! Bad return status for module build on kernel: 2.6.27-3-generic (i686)
Consult the make.log in the build directory
/var/lib/dkms/nvidia/96.43.05/build/ for more information.
Installing initial module

Error! Could not locate nvidia.ko for module nvidia in the DKMS tree.
You must run a dkms build for kernel 2.6.27-3-generic (i686) first.
Done.

Setting up nvidia-glx-96 (96.43.05-0ubuntu10) ...

Processing triggers for libc6 ...
ldconfig deferred processing now taking place

$ lsb_release -rd
Description: Ubuntu intrepid (development branch)
Release: 8.10

$ apt-cache policy nvidia-96-kernel-source linux-headers-2.6.27-3 linux-image-2.6.27-3-generic
nvidia-96-kernel-source:
  Installed: (none)
  Candidate: 96.43.05-0ubuntu10
  Version table:
     96.43.05-0ubuntu10 0
        500 http://archive.ubuntu.com intrepid/restricted Packages
linux-headers-2.6.27-3:
  Installed: 2.6.27-3.4
  Candidate: 2.6.27-3.4
  Version table:
 *** 2.6.27-3.4 0
        500 http://archive.ubuntu.com intrepid/main Packages
        100 /var/lib/dpkg/status
linux-image-2.6.27-3-generic:
  Installed: 2.6.27-3.4
  Candidate: 2.6.27-3.4
  Version table:
 *** 2.6.27-3.4 0
        500 http://archive.ubuntu.com intrepid/main Packages
        100 /var/lib/dpkg/status