Broken for me in Lucid too, on setup from the i386 Alternate CD. 
====================================
Unable to install GRUB in /dev/md1
Executing 'grub-install /dev/md1 failed'
This is a fatal error
====================================

Manual setup succeeded in the alternate CD repair chroot using grub-
install /dev/sda repeated for /dev/sdb.

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grub2 needs to install the bootloader to each disk in a RAID1 array providing 
/boot
https://bugs.launchpad.net/bugs/427048
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