Just experienced this bug when updating a Ubuntu 10.04.3 LTS server to
grub-pc (1.98-1ubuntu13). Before finding myself in the endless loop when
answering 'No' at question 'Continue without installing GRUB?' I was
prompted by another screen asking me what to do regarding the modified
/etc/default/grub file, where I have chosen to install the maintainer's
version and then I reapplied my changes (and ran update-grub).

Anyway, answering 'Yes' to get out of the otherwise endless 'Continue
without installing GRUB?' loop, did not seem to have any adverse effect
and the system booted properly.

Right after that I updated another server, which I thought to be pretty
similar. Surprisingly I was not prompted about what to do with the
changed /etc/default/grub file and was also not prompted with the
'Continue without installing GRUB?' question. I can only speculate as to
why I was not prompted: I  already had
'GRUB_CMDLINE_LINUX_DEFAULT="noquiet nosplash"' and no surrounding
comments like on the other server ... just guessing here.

This bug has not been fixed.

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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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