I had this problem on Ubuntu 11.10 64-bit with grub-pc 1.99-12ubuntu5.
The PC has a Gigabyte board with Award BIOS v 6.00PG.

The workaround suggested above worked -- I disabled FDD in BIOS:
Standard CMOS Features -> Drive A: None

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https://bugs.launchpad.net/bugs/568720

Title:
  Error scanning for fd0 on boot

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