[ubuntu] Unable to Boot after Kernel update and Boot folder cleanups (12.10)

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http://ubuntuforums.org – Hello I was trying to resolve some small issues with hanging old Kernels and doing some general cleanup of BOOT folder but it seems I did something more serious that that. After I have restarted I cannot boot the system anymore. I can boot from USB only and see my Hard Drive with all the data but as I am so new to this environment I cannot fix it. I have googled a lot and tried several things with reinstalling GRUB but it seems that the system doesn`t know where to find the partitions and what to boot. Please if you have any idea I would very appreciate any help. Please see the photo of the (Hardware)