This is still happening today, September 12th, 2011.

I did this to fix it, as suggested above, with sudo, as my disk is
/dev/sda

echo set grub-pc/install_devices /dev/sda | sudo debconf-communicate
sudo dpkg-reconfigure grub-pc

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https://bugs.launchpad.net/bugs/580408

Title:
  Option 'No' at question 'Continue without installing GRUB?' does
  nothing. Forced to answer 'Yes'.

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