This seems like the same bug that I've noticed when using the Maverick
mini.iso. If you install Ubuntu via a flash drive (created with
Unetbootin or Ubuntu Startup Disk Creator) grub2 installs to /dev/sda
which is the flash drive that you are installing FROM, not the drive you
are installing TO. This then makes the system unbootable and could leave
lots of inexperienced users very disenfranchised.

Ideally, grub should give you the option of what drive to install it to
during the Ubuntu installation process.

To fix this in the short term, leave the flash drive you installed FROM
in the PC and once Ubuntu and been installed when the PC reboots, choose
to boot from the flash drive, this will then boot the newly installed
Ubuntu installation. Then, login and type sudo fdisk -l to find out the
name of the hardrive you need grub2 installed to. Finally install grub2
by issuing sudo grub-install /dev/sdX where /dev/sdX is the name of the
drive that the fdisk command gave you.

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https://bugs.launchpad.net/bugs/591202

Title:
  Grub update fails ("hideously") on usb-creator images

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