I can confirm this is fixed in Ubuntu 10.04 Lucid Lynx Alpha 3. I'm marking
this bug as Fix Released, thank you all for your input.
Please feel free to reopen this bug report if you're able to verify this bug
still.
** Changed in: grub2 (Ubuntu)
Status: Confirmed => Fix Released
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Grub fails to install on Lucid guests running under KVM during installation
https://bugs.launchpad.net/bugs/524941
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