Comment 26 for bug 391044

Yes, it still has the "--no-floppy" in grub.cfg. But it is boots okay now even with this.
Sorry I didn't make this clearer. Also converted my '1st grub' partition and my Hardy from grub legacy to grub2.

All works fine. Interesting though, Hardy grub2 does not contain the "--no-floppy" lines, and the /etc/default/grub does not contain "GRUB_TERMINAL=console" line. Manually adding it does not make it hidden either.