This bug was fixed in the package grub - 0.97-29ubuntu13
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grub (0.97-29ubuntu13) hardy; urgency=low
* /host is not accessible when update-grub is run by grub-installer so
the file test will always fail (LP: #175772). Thanks Agostino Russo.
-- Evan Dandrea <[EMAIL PROTECTED]> Wed, 30 Jan 2008 09:11:41 -0500
** Changed in: grub (Ubuntu)
Status: In Progress => Fix Released
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Update-grub does not set kopt correctly in loopinstallations
https://bugs.launchpad.net/bugs/175772
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