Saw same hang when upgrading from 10.04 to 10.10. Problem for me is the
dialog for grub-pc configuration was behind the main update manager's
window. Waiting on input. But I couldn't rearrange the windows to accept
the grub-pc configuration question.

CPU usage was near 100% with no processes using large amounts of CPU.
Sat like that for 2 or 3 hours with no progress.

What allowed me to continue was to set 
System->Preferences->Appearance->Visual Effects
from None to Normal setting.

Once this was done I could rearrange the windows and click the button to
accept grub-pc config.

A friend had the same problem and he aborted. I was able to recover one
machine as others had after reboot. The other, grub-pc had to be un-
installed and re-installed to clean up partial upgrade.

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https://bugs.launchpad.net/bugs/691569

Title:
  grub-setup hangs on upgrade (natty)

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