I had the same problem with the Gutsy install and it caught me again on the 
Hardy install.  I marked it as a buG previously.  Honestly... this is enough to 
make me quit using ubuntu. 
 I installed ubuntu to an external USB drive but grub was also installed into 
the master boot record of an encrypted internal drive. Why would this be set as 
the default?.  Why wouldn't grub only be installed on the targeted install 
drive?  From what I understand the only way to remove grub from the mbr is to 
reformat the mbr.  In this case my internal HDD with windows 2000 is now 
rendered useless as the encryption software resided in the mbr.

THIS IS A MAJOR FLAW THAT SHOULD HAVE ALREADY BEEN FIXED!!!!

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Grub installs to wrong drive's MBR in default install. No way to change in 
standard installer.
https://bugs.launchpad.net/bugs/46520
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