This bug was fixed in the package cloud-init - 0.5.10-0ubuntu1.5

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cloud-init (0.5.10-0ubuntu1.5) lucid-proposed; urgency=low

  * make grub-config code run on instance first boot so user is not
    prompted on grub upgrade (LP: #683890, LP: #683379)

cloud-init (0.5.10-0ubuntu1.4) lucid-proposed; urgency=low

  * add grub-legacy-ec2 to support utilizing pv-grub
   rebooting into new kernels (LP: #671103)
 -- Scott Moser <smo...@ubuntu.com>   Thu, 02 Dec 2010 09:42:17 -0500

** Changed in: cloud-init (Ubuntu Lucid)
       Status: Fix Committed => Fix Released

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https://bugs.launchpad.net/bugs/683890

Title:
  config-grub does not run

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