I can confirm the issue mentioned in post #27.
On my machine it sometimes boots up to the grub rescue console after a cold 
boot, (with "out of disk" message) but always succeeds with a restart (warm 
boot). I'm using latest 10.04 binaries and even tried to comment out the line 
from post #2, but no improvement.

The same machine bootet correctly and without any issues with grub
legacy, which I used up to Ubuntu 9.10.

-- 
grub 2 error: out of disk. failed to boot default entries. press any key to 
continue...
https://bugs.launchpad.net/bugs/477430
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