Comment 2 for bug 64928

The URL given by Kit seems to be the related upstream bug report.

You can workaround the problem by removing the "savedefault" lines from /boot/grub/menu.lst
Unfortunately you have to do this always after "update-grub".

Here's a patch, which allows setting if "savedefault" should get used: https://bugs.launchpad.net/ubuntu/+source/grub/+bug/66278