Public bug reported:

Binary package hint: grub

Grub does not install if Lucid is installed onto a KVM guest using
virtio disks.  The installation will progress to the point where the
boot loader is supposed to be installed, and an error message will pop
up saying that grub failed to install.  If you continue the installation
anyhow, the system will of course not boot because there is no grub boot
loader installed.

Further, if you then boot off the Lucid CD ISO to rescue the system, you
will find that the Lucid CD in rescue mode does not detect any disks.
You must to a modprobe of the virtio driver in order to get the Lucid
ISO to recognize the virtio disk in rescue mode.  Then, of course, you
have to repair the installation.

This only happens if you install the system onto a virtio disk.  If you
install onto, for instance, an IDE disk, then switch KVM to use virtio,
everything is fine.  But it's obvious that something is very broken in
the virtio handling of Lucid at installation time.

ProblemType: Bug
Architecture: amd64
Date: Sat Feb 20 10:45:56 2010
DistroRelease: Ubuntu 10.04
InstallationMedia: Ubuntu 10.04 "Lucid Lynx" - Alpha amd64 (20091209)
Package: grub (not installed)
ProcEnviron:
 PATH=(custom, no user)
 LANG=en_US.UTF-8
 SHELL=/bin/bash
ProcVersionSignature: Ubuntu 2.6.32-13.18-generic
SourcePackage: grub
Uname: Linux 2.6.32-13-generic x86_64

** Affects: grub (Ubuntu)
     Importance: Undecided
         Status: New


** Tags: amd64 apport-bug kvm lucid qemu-kvm virtio

-- 
Grub fails to install on Lucid virtio-based guests running under KVM during 
installation
https://bugs.launchpad.net/bugs/524941
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