Also hit that bug with 8.10.

I booted the QEMU VM with a rescue CD, mounted the root FS and then chroot in it
Even when launching grub-install manually, same blocking occurs.

However, using lilo instead did allow me to create a bootable VM.

I use QEMU 0.9.0-18.2mdv2008.1 on Mandriva 2008.1

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ubuntu-server install fails at grub-install stage when running in a KVM image
https://bugs.launchpad.net/bugs/252901
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