Boot with the live cd and drill down to your /boot/grub folder and the /boot/grub folder on the live cd. Open up the menu.lst in both and see what you have. It should look something like this:
title Pardus 2007.2 RC [22.214.171.124-85]
kernel (hd0,0)/boot/kernel-126.96.36.199-85 root=/dev/sdb3
Keep in mind that the above is from the beta/first release of 2007.2. My 2007.1 is currently being used by a friend, along with my live cd, so I don't rightfully remember what the grub should say. You can use from Konsole:
kdesu kate menu.lst
to edit the file on your hard drive if you feel comfortable. I've noticed a few users having this same update/boot problem, and I'm curious to see what the common factor is.