Booting using serverboot still should work I think, but it isn't supported anymore AFAIK. I wonder why many people still use this method. Perhaps because it is in the example menu.lst/docs of grub (I haven't checked if this has been fixed). Should a bug report be sent to the grub maintainers and perhaps the debian maintainer of grub? This will prevent a lot of irritation and troubles for many people.
Been there, Okuji didn't want to update the entry since "we haven't made a realse and that the current release (0.2) uses the serverboot method"; search the bug-grub archives for the particular thread. I think that the Debian package already uses the new boot method in the example files.
