Thaijames, you may need to move the old kernel file to a new directory.
I executed the following which remedied the problem:
mkdir /lib/modules/2.6.35.8.kernel.old
mv /lib/modules/2.6.35.8 /lib/modules/2.6.35.8.kenrnel.old
apt-get install linux-image-2.6.35.8



