I have the same problem -- the misleading update tricked me into installing 
grub into the partitions.
This is on a new system that has only windows xp home and a recovery partition.
ultimatebootcd has a utliity called GUJIN which shows you the bootloaders -- 
both say GRUB
I have tried to boot from a windows XP CD to get into a recovery console to no 
avail!!!! (windows apparently thinks there is a virus upon seeing GRUB2)
Tried another utility  MBRWORK to reset the MBR to normal but GUJIN still 
reports GRUB for both partitions
Not sure if it doesn't work or Grub2 installs itself more deeply in ways I have 
yet figured out!!!
I have already also tried the TestDisk program to reverse the damage...in my 
case it said the backup one was bad and only allowed for REBUILD -- so I tried 
that..it now reports them as the same -- the same WRONG one
I have no way to even run the recovery partition to reinstall XP and I cannot 
run XP recovery console .... new systems come without backup disks or 
installers as well.

This is a MAJOR problem.....yes the updater was apparently talking about
disks but it gave a selection for all the existing partitions which was
very misleading and ultimately lead to the damage.

Any help is much appreciated. Thanks!!!

-- 
Unable to access non-Ubuntu loaders from GRUB2 menu in Lucid
https://bugs.launchpad.net/bugs/571893
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