I have Intel Atom Processor and I have installed the  Ubuntu Karmic Kaola Alpha 
4  into  a SD Card.  I also see this error.  If I remove the search line in 
grub menu  command, it is working fine. 
I am doing every time maunally. I dont know how  to  save this configuration .

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grub2 update adds --no-floppy to "search " lines
https://bugs.launchpad.net/bugs/391044
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