Please look in to this thread.
http://ubuntuforums.org/showthread.php?t=1224417
I tried to boot the iso using editing /etc/grub.d/40_custom
It booted properly.
It started the boot process.Every thing went fine. I am sorry i dont
remember the exact step but system got stuck.Mouse pointer was
shown,Black screen,num-LOCK was stuck.Mouse pointer stuck
Here is my 40_custom
menuentry "UbuntuLucid" {
loopback loop /wrk/ubu/ubuntu-10.04-desktop-i386.iso
linux (loop)/casper/vmlinuz boot=casper
iso-scan/filename=/wrk/ubu/ubuntu-10.04-desktop-i386.iso noeject
noprompt --
initrd (loop)/casper/initrd.lz
}
Dont forget to update-grub after u edit this file
Can anyone check if the boot from iso method works for them.
--
Srihari K
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