Ok, this has now been fixed. I did this by booting a Live USB, mounting
/dev/sda1, chrooting into the mounted directory (and setting up bind
mounts for /dev, /proc and /dev/pts), and then running update-grub and
grub-install. I think this may be related to having an older version of
grub that was in some way incompatible, as I've upgraded this machine
with each new release possibly since as far back as gutsy (don't
remember exactly which version it originally came with).

mthad...@hurlyburly:/boot/grub$ dpkg -l | grep grub
ii  grub                                                         
0.97-29ubuntu60                                 GRand Unified Bootloader 
(Legacy version)
ii  grub-common                                                  1.98-1ubuntu2  
                                 GRand Unified Bootloader, version 2 (common 
files)

-- 
Grub error drops me into grub rescue prompt after latest lucid upgrade - 
"error: no such device"
https://bugs.launchpad.net/bugs/549638
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