This bug was fixed in the package grub2 - 1.99-21ubuntu3.1

---------------
grub2 (1.99-21ubuntu3.1) precise-proposed; urgency=low

  * Switch to backwards compatible ${} syntax for grub.cfg (LP: #978464)
 -- Dmitrijs Ledkovs <[email protected]>   Tue, 15 May 2012 09:03:27 
-0700

** Changed in: grub2 (Ubuntu Precise)
       Status: Fix Committed => Fix Released

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

Title:
  After LTS->LTS (lucid2precise) upgrade, upon reboot drops into grub
  recovery shell

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