grub-setup seems to be trying to scan the empty space before the first 
paritition.   In my case about 75 gb.  
Also it's using about 1 gb ram causing my machine to thrash and grind to halt.

The fix for me was to create a partition at the beginning of the disk.

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https://bugs.launchpad.net/bugs/691569

Title:
  grub-setup hangs on upgrade (natty)

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