Comment 4 for bug 462241

Anish_D here is the full details of my scenario:
I have two hard drives, /dev/sda (has Windows and Hardy) and /dev/sdb (empty), I did a fresh install of a daily build of Karmic (27th of Oct.). During setup I have been prompted to install GRUB and I hit OK, apparently it has installed GRUB2 on /dev/sda (on top of legacy grub of Hardy) then the described above issue came up. I don't know is this issue because of a bug in GRUB2 or because it has been installed on top of legacy grub.

Later on, I did a fresh install of the final release of Karmic, but this time I choosed to install grub on /dev/sdb -in this case it is (hd1)- the issue didn't appear, GRUB menu loaded just fine. that's why I marked the question as fix-released

Here is how I recovered from the first situation:
- restore Windows XP mbr using MBRFIX utility (freeware) http://www.sysint.no/products/Download/tabid/536/language/nb-NO/Default.aspx
- Install legacy grub using LiveCD of Hardy (or later but not Karmic) but mounting Hardy's partition (/media/hardy) and then in terminal - In terminal do "sudo grub-install (hd0) --root-directory=/media/hardy"
- reboot , now I got back my old grub list

Please refer to grub wiki page for more info http://wiki.ubuntu.com/grub, and let me know if you had more problems