I've noticed a similar behavior in Kubuntu Jaunty Beta. The advanced
installation window shows a drop-down box with a single option, which is
installing GRUB in the MBR. I couldn't find a way to install the
bootloader in a specific partition.

This issue was discussed in the following threads as well:

http://kubuntuforums.net/forums/index.php?topic=3102394.0
http://ubuntuforums.org/showthread.php?t=1123945

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[Jaunty] installer doesn't ask where to install GRUB and overwrites MBR which 
contains TrueCrypt Bootloader
https://bugs.launchpad.net/bugs/337957
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