Confirm on Lenovo RD120 with ServeRaid 8k controller and Sata drives.
grub-install failed as well, but this worked:
Bring the machine up using the desktop LiveCD and set up grub manually through 
the terminal command line:

chroot /media/disk
grub
find /boot/grub/stage1
root (hd0,0)
setup (hd0)

(substitute hd0,0 with your own values). Upon reboot, the machine comes
up.

-- 
IBM Serveraid 8k fails to boot Ubuntu Server 8.10
https://bugs.launchpad.net/bugs/308576
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