Server 9.10 to 10.04 upgrade grub problems

[stop]

Binary package hint: update-manager

I have a 64 bit machine for testing upgrading 9.10 server to 10.04. The machine is running software raid1 (md0 /, md1 /home, md2 swap). Everything is working fine in 9.10 (it's using grub2).
When I upgrade to 10.04 the upgrade process will tell me I chose not to install grub (which I didn't), when select I do want to install it pops me back to the same question. So I am in a loop and the only way to continue is to not install/upgrade grub.
Now (after upgrade is complete) when the system starts up, booting takes about 6 times as long I also get a message at boot (where it looks like it's stuck for some time, could be that the screen is just not updating anything):
Booting from local disk...
Grub loading.
error: biosdisk read error
   [Linux-bzImage, setup=0x3400, size=0x3f39e0]
   [Initrd, addr=0x2f7b0000, size=0x7c3ae2]

ProblemType: Bug
Architecture: amd64
Date: Wed Mar 10 17:15:06 2010
DistroRelease: Ubuntu 9.10
Package: update-manager-core 1:0.126.9
ProcEnviron:
 PATH=(custom, no user)
 LANG=en_US.UTF-8
 SHELL=/bin/bash
ProcVersionSignature: Ubuntu 2.6.31-20.57-server
SourcePackage: update-manager
Uname: Linux 2.6.31-20-server x86_64