Same issue here with 9.10 x64 in Wubi.
Mine seems to be an issue with the kernel though. When I enter:
linux /boot/vmlinuz-2.6.31-15-generic root=/dev/sda3
loop=/ubuntu/disks/root.disk
I get a grub "error reading file". However if I specify -14-generic
instead, it works fine. I have tried reinstalling the kernel to no
avail. For now I will uninstall -15-generic until the next kernel
release.
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After 9.10 grub update can not boot into Wubi install
https://bugs.launchpad.net/bugs/477104
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