This is confirmed. Grub NEVER works when using the boot.img.gz from the
netboot directory with a flash drive--it always installs grub on the
flash drive. To fix this requires:
1) edit groot in /boot/grub/menu.lst
2) reinstall grub on the right partition.
3) edit /etc/initramfs-tools/conf.d/resume to fix correct swap (otherwise
usplash is broken).
** Changed in: grub-installer (Ubuntu)
Status: New => Confirmed
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Grub Installs To Wrong Root Path
https://bugs.launchpad.net/bugs/243803
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