I just encountered this upon upgrading a 10.04 64bit VM.  Like Richard,
I found that grub-pc/install_devices was empty.  Following his
suggestions and setting a value for this debconf field does indeed fix
it.  Perhaps an upgrade should check this field and if empty prompt for
a value?

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https://bugs.launchpad.net/bugs/580408

Title:
  Option 'No' at question 'Continue without installing GRUB?' does
  nothing. Forced to answer 'Yes'.

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