I found a solution - Ubuntu developers:

It seems if I manually installed Grub2 by skipping the bootloader
installation at Step 8/8 - I can create dual boot of WinXP and Ubuntu
successfully.

It is my default in Ubuntu 10.04 to disallow us from installing the
bootloader on root partition directly ?

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Lucid Installer step 8 advanced doesn't select boot loc
https://bugs.launchpad.net/bugs/543714
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