I too suffer from this bug  my work around as follows;

You can also use an alpha 5 alternate cd

Boot CD

select Rescue System

Make sure you set the correct root ......./dev/sda in my case

Follow prompts until you reach Rescue Menu

choose first option Console Window Note this is root no need for sudo

Type nano /etc/default/grub Uncomment the GRUB_TERMINAL=console line
Save file

Type update-grub

Type exit

Choose reboot from Rescue Menu

-- 
Boot fails with Out of Range Pointer error
https://bugs.launchpad.net/bugs/424503
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