I'm seeing a very similiar issue,  although with no raid setup - just a
single sata disk, standard partition table, nothing complex.

/usr/sbin/grub-bios-setup: warning: this LDM has no Embedding Partition; 
embedding won't be possible.
/usr/sbin/grub-bios-setup: error: embedding is not possible, but this is 
required for RAID and LVM install.

$ fdisk -l

Disk /dev/sda: 300.1 GB, 300069052416 bytes
255 heads, 63 sectors/track, 36481 cylinders, total 586072368 sectors
Units = sectors of 1 * 512 = 512 bytes
Sector size (logical/physical): 512 bytes / 512 bytes
I/O size (minimum/optimal): 512 bytes / 512 bytes
Disk identifier: 0x8f83bc52

   Device Boot      Start         End      Blocks   Id  System
/dev/sda1       562628430   586067264    11719417+  82  Linux swap / Solaris
/dev/sda2   *          63   562628429   281314183+  83  Linux

Currently resorting to manually installing grub 1.99-22ubuntu2 every
time I update so the system actually boots.

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https://bugs.launchpad.net/bugs/1051154

Title:
  [quantal] warning: your embedding area is unusually small. core.img
  won't fit in it.

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