@Christiano #2
@jp #7
@Guigous #10

You may well encountered bug 441941.

In nutshell, GRUB 2 needs more space after MBR than Grub Legacy. 
Some Windows installations, netbooks in particular, have some kind of factory 
installed Recovery Solution. Its purpose is to recover/repair Windows using 
backups from a hidden partition.

So, the culprit is this additional Windows software. In order to provide
its recovery functions it writes some crap behind MBR without doing any
checking for possible collisions, and in our case, ruining GRUB 2 image
file. Uninstalling these recovery tools from Windows should be
sufficient.

-- 
Grub loading. The symbol ' ' not found. Aborted. Press any key...
https://bugs.launchpad.net/bugs/482757
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