However, this gave me a hint - I've been looking in the wrong place.
The buggy script is actually /etc/grub.d/10_lupin, not
/etc/grub.d/10_linux at all, and on looking at it I see the problem.
** Package changed: grub2 (Ubuntu) => lupin (Ubuntu)
** Changed in: lupin (Ubuntu)
Status: Incomplete => Triaged
** Changed in: lupin (Ubuntu)
Assignee: (unassigned) => Colin Watson (cjwatson)
** Also affects: lupin (Ubuntu Karmic)
Importance: Undecided
Status: New
** Changed in: lupin (Ubuntu Karmic)
Status: New => Triaged
** Changed in: lupin (Ubuntu Karmic)
Importance: Undecided => High
** Changed in: lupin (Ubuntu Karmic)
Assignee: (unassigned) => Colin Watson (cjwatson)
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infinite loop in /etc/grub.d/10_linux while reading image list - "Found linux
image: /boot/vmlinuz-2.6.32-16-generic"
https://bugs.launchpad.net/bugs/540579
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