This bug was fixed in the package grub - 0.97-29ubuntu6
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grub (0.97-29ubuntu6) hardy; urgency=low
* Set kopt correctly for loop installations (LP: #175772). Thanks
Agostino Russo.
-- Evan Dandrea <[EMAIL PROTECTED]> Fri, 18 Jan 2008 14:41:27 -0500
** Changed in: grub (Ubuntu)
Status: New => Fix Released
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Update-grub does not set kopt correctly in loopinstallations
https://bugs.launchpad.net/bugs/175772
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