I have exactly the same problem - although not in Feisty.
My old hard drive broke and I got a new one, a Western Digital Scorpio 
(WD1200BEVE).

I first installed Win XP on it and everything worked fine. Then I
installed Arch Linux from 2008.3 image and wrote Grub to the mbr. Next
all I got was "invalid system hard disk" when I tried to boot on the
drive. I figured I did something wrong in the installation and installed
Ubuntu 8.10 Beta. The installation went fine again, and I wrote grub to
mbr again, but it didn't help - the system wouldn't boot on the hd.

However, using the "Boot From First Hard Disk" option on the Live CD
boot menu works for me too - I get the Grub menu and can boot to Ubuntu
and XP from there.

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Feisty install does not boot from hard disk
https://bugs.launchpad.net/bugs/89279
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