It's not a fatal bug but very annoying.
The menu.lst file cannot be processed as usual for every user who has a
boot partition mounted as /boot under linux because of the hard coded path
for menu.lst in asmtub.c on line 89 in grub 0.5.95.
Because of this I had to make another directory and move everything.
Instead of /boot/grub/menu.lst I have /boot/boot/grub/menu.lst.
It should work with a symbolic link
ln -s /boot /boot/boot
This bug doesn't affect anyone who doesn't have a separate boot partition
mounted under the name /boot.
here is my partition table info.
/dev/hda1 /dos vfat user,exec,conv=binary 0 0
/dev/hdc2 /dos2 vfat user,exec,conv=binary 0 0
/dev/hdc1 /boot ext2 defaults 1 2
/dev/hdc3 swap swap defaults 0 0
/dev/hdc4 / ext2 defaults 1 1
as you can see /boot is not on the same partition as / and that is where
your problem lies.
I hope I didn't repeat myself too much. It was very confusing for me and
it took over an hour to fix.
If you have any questions please email me.
Dave