Same problem. Installed 9.10 using Wubi. Worked fine for 2 weeks until reboot.
If the missing c/ubuntu/disks/boot/grub/grub.cfg is the origin of the problem 
can anybody post a copy from a working install ?

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Wubi/Karmic boot: kernel panic - not synching: VFS
https://bugs.launchpad.net/bugs/477169
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