There is also a very important use case which fails due to this error:
having a full disk encryption installation of Windows with truecrypt and
then installing full disk encrypted ubuntu. The grub has to be installed
on /boot partition as truecrypt installer has to be in MBR as it is not
that flexible as grub.

I was able to install grub to the sda3 when manually running grub-setup
with --force on alternate CD, but the grub install is broken as the
assets are not found and I have to manually type the kernel and initrd
options on minimal grub shell.

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https://bugs.launchpad.net/bugs/584324

Title:
  grub2 fails when being installed in a partition

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