I have same issue on my PC whose motherboard is GIGABYTE GA-MA78GM-S2H.
The southbridge I have is exactly the SB700.
I CAN successfully use the Ubuntu 9.10 live CD and install but
I CAN NOT boot into system after the reset.
It is fixed by switch the SATA mode from AHCI to Native IDE.
So I think this bug is still exist in the GRUB>

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Can´t Install Hardy 8.04 final on SB700 controller in AHCI mode (chipset 780G) 
https://bugs.launchpad.net/bugs/220599
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