This bug was fixed in the package grub2 - 1.99-21ubuntu4

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grub2 (1.99-21ubuntu4) quantal; urgency=low

  * Switch to backwards compatible ${} syntax for grub.cfg (LP: #978464)
 -- Dmitrijs Ledkovs <[email protected]>   Tue, 15 May 2012 08:03:30 
-0700

** Changed in: grub2 (Ubuntu Quantal)
       Status: Triaged => Fix Released

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https://bugs.launchpad.net/bugs/978464

Title:
  Upgrade 10.04 to 12.04 Beta 2 failed, grub issue

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