After an update, my Ubuntu 9.1 installed as application showing Kernel Panic on startup... how can I fix it!?

Sorry, guy. You're using wubi which is fine, but I don't think there is a way. If you don't have an Ubuntu install disk (and it should be Karmic Koala or Jaunty Jackalope -- nothing older) download and burn one. boot from it, open an xterm, try to get onto your wubi root directory (something I have frankly never tried to do) hope you have an internet connection, type "sudo chroot ." making sure there is a period after the chroot as that means THIS directory, then type "sudo apt-get -f install". If you get as far as the chroot then you may be able to fix it. If apt reports it is doing things, then try rebooting. If it doesn't come up, use the install disk again, try "sudo apt-get daily-upgrade" and try reinstalling the kernel and the kernel-modules packages . If that doesn't work, give up. Try installing Koala onto a pen drive and using that. There are tutorials for it on the Ubuntu documentation and at pendrive dot com which I[ll link to in sources. There really are no guarantees. I think I know what the problem is (and yes Windows did cause it which is no reason not to use Windows) but it's definitely not easily fixable and since I don't use wubi (I use the slackware and gentoo distributions of Linux) I haven't even tried to fix it. You do need to start the root directory on certain parts of the disk to boot. And Windows sees wubi as a file which it can move around as it pleases. And it probably has. Changing the size of your installed packages may help. A pen drive may be a good idea if you are going to do a ton of customizing.