I am still experiencing this bug. I tried to install Ubuntu 10.04 server
on three discs sda, sdb, sdc. They were all partitioned into two primary
partition, 2GB and "rest". I run a boot partition raid1 on the 2GB and a
raid5->encrypted-. >logical volumes on the "rest"-parts.

Everything goes smoothly until the grub part. Screen goes res and says,
grub-installed failed. I was offered by the installer to use "old" grub
instead but the installation of this old grub also failed. Workaround
for me (many hours (= later ) was to:

1. Press back
2. Go into shell (bottom in the menu)
3. mount --bind /proc /target/proc
4. mount --bind /dev /target/dev
5. chroot /target
6. bash
7. apt-get update
8. apt-get -y upgrade
9. apt-get install grub
10. exit
11. exit
12. Now go through the grub step, which now worked using the "old" grub
 
The system booted up nicely but I have not tried rebooting it since.

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https://bugs.launchpad.net/bugs/527401

Title:
  grub-installer fails to install on a raid1 array

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