Thanks for taking time report this bug.
This seems a strange issue. First the grub error 17 means that you are using an
unknown filesystem type for your boot partition. What is the output of `fdisk
-l`?
Linux partitions don't need to be setted to boot so when you say "The second
time I tried installing 7.10, fdisk showed that the linux partition had been
set to boot (rather than the ntfs)" I have some doubts on the installation
method you are using. Where did you downloaded or ordered the CD?
Last, the MBR can't be irrecoverable. If it's true, all the disk should be
damaged.
** Changed in: ubiquity (Ubuntu)
Status: New => Incomplete
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Ubiquity causes MBR problems; fails to install grub
https://bugs.launchpad.net/bugs/158407
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