Comment 13 for bug 581760

After the recent grub update (to version 1.98-1ubuntu8), my Ubuntu 10.04.1 install (using Wubi on Windows 7) failed to boot. The system rebooted almost immediately after choosing "Ubuntu" in the Windows boot manager. Booting Windows was unaffected.

Editing /boot/grub/grub.cfg with a live cd (see comment #12), I removed the following lines to get the system to boot again:
  if loadfont /usr/share/grub/unicode.pf2 ; then
     set gfxmode=640x480
     insmod gfxterm
     insmod vbe
     if terminal_output gfxterm ; then true ; else
       # For backward compatibility with versions of terminal.mod that don't
       # understand terminal_output
       terminal gfxterm
     fi
  fi
and:
  insmod gettext

To ensure that the offending lines are not re-added when grub.cfg is regenerated, I uncommented the line:

GRUB_TERMINAL=console

in /etc/default/grub, and ran update-grub. The resulting grub.cfg works for me.