PS that "bootloader install failed" message occurs near the end of the
Installer slideshow. That's why I added Ubiquity as an affected project.
I'll leave that to someone to confirm or remove as appropriate.

In summary... 
1. bad wubildr shipped with wubi.exe, 
2. an exception installing grub during ubiquity install. 

If you manually boot the wubi install (from the grub prompt) fix
grub.cfg and rebuild the wubildr... then it works.

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https://bugs.launchpad.net/bugs/693671

Title:
  wubi-r200 install will not boot

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