This is rather sever problem because GRUB refuses to boot system - the error isn't ignored.
The error message "error: file not found" doesn't even contain a faint hint what the problem is, or at least at what statement the error occurred. It took me awhile to diagnose it since the usual GRUB commands (e.g. find, "#" comments are not handled) do not work in the GRUB2 and "help" screen is apparently dysfunctional in version 1.97.
