Comment 50 for bug 653134

A current work around that works on my system is after it makes it to the grub command prompt... type:

insmod ntfs
set root=(hd0,2)
loopback loop0 /ubuntu/disks/root.disk
set root=(loop0)
linux /boot/vmlinuz-2.6.35-22-generic root=/dev/sda2
   loop=/ubuntu/disks/root.disk ro
initrd /boot/initrd.img-2.6.35-22-generic
boot

Change the root=(hd0,2) and root=/dev/sda2 to the correct hard drives and it should boot.

- Paul