Confirmed here. Though my configuration is a bit different it gives the same 
behaviour as here above described.
I run Natty alpha3 amd64 with kernel 2.6.38-7-generic.

sudo fdisk -l responds with the following:

Disk /dev/sda: 500.1 GB, 500107862016 bytes
255 heads, 63 sectors/track, 60801 cylinders
Units = cylinders of 16065 * 512 = 8225280 bytes
Sector size (logical/physical): 512 bytes / 512 bytes
I/O size (minimum/optimal): 512 bytes / 512 bytes
Disk identifier: 0x57853315

   Device Boot      Start         End      Blocks   Id  System
/dev/sda1               1          13      102400   83  Linux
Partition 1 does not end on cylinder boundary.
/dev/sda2              13        2563    20480000   83  Linux
/dev/sda3            2563       54428   416603136   83  Linux
/dev/sda4   *       54428       60802    51198976    7  HPFS/NTFS

With /dev/sda1 mounted as /boot formatted as reiserfs, /dev/sda2 is also 
formatted as reiserfs and mounted as /
/dev/sda3 is an ext4 partition mounted as /home and /dev/sda4 is my Windows 
partition.

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https://bugs.launchpad.net/bugs/736743

Title:
  boot error: sparse file not allowed

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