While I encountered a similar problem when upgrading from 8.04 LTS, my 
observations might possibly prove helpful for fresh installs as well:
- 10.04 dropped me to the initramfs shell with: "ALERT!! /dev/md0 does not 
exist. Dropping to a shell!"
- I was then able to continue booting after issuing "mdadm --auto-detect; exit"
- A subsequent "grub-install /dev/md0" fixed the initramsfs problem with 
/dev/md0 for me.
Please note this is still grub 0.97, as that doesn't seem to be upgraded 
automatically...

-- 
mount: mounting /dev/md0 on /root/ failed: Invalid argument
https://bugs.launchpad.net/bugs/569900
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