I believe this is fixed in the version of GRUB in Ubuntu 10.10. Here's
the main relevant upstream ChangeLog entry:
2010-06-28 Vladimir Serbinenko <phco...@gmail.com>
XEN with Linux grub-mkconfig support.
* conf/common.rmk (grub-mkconfig_SCRIPTS) [linux]: Add 20_linux_xen.
* util/grub-mkconfig.in: Export GRUB_CMDLINE_XEN and
GRUB_CMDLINE_XEN_DEFAULT.
* util/grub.d/20_linux_xen.in: New file.
If there are problems with this, it's probably best to open fresh bug
reports with the details.
** Changed in: grub2 (Ubuntu)
Status: Confirmed => Fix Released
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Xen entries not working under grub2
https://bugs.launchpad.net/bugs/216176
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