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Couldn't open directory /lib/modules/2.6.26-2-xen-686: No such file
or directory
FATAL: Could not open /lib/modules/2.6.26-2-xen-686/modules.dep.temp
for writing: No such file or directory
Here you got error that there is no such file or directory:
/lib/modules/2.6.26-2-xen-686/modules.dep.temp
I have the above directory installed with the following files.