The same issue I found while installing Xubuntu 11.04 and Kubuntu 11.04 from 
flash drive on external HDD.
 
During installation the root is /dev/sdc1 (sda - internal HDD, sdb - LiveUSB - 
installation source) but while loading without LiveUSB the root became 
/dev/sdb1 and starting fails to the BusyBox.

If I change the kernel boot options in GRUB (pressing "e" in GRUB menu)
I can load the system. The command update-grub makes the correct
grub.cfg (with UUID root drive identification). After that the system is
loading fine.

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https://bugs.launchpad.net/bugs/384633

Title:
  Grub Installer uses device name instead of UUID, leading to unbootable
  system

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