<SNIP>
There is a bug with using GRUB as a bootloader. Either use
LILO or use one of the following workarounds:
<SNIPPED workaround for grub bug>
Or what you can do to fix grub is:
1) install, ignoring the grub bug
2) reboot into rescue mode from the DVD
3) mount your root partition _only_
4) chroot to that directory
5) mount /boot
6) grub-install /dev/hda, or whatever your boot disk is
7) reboot.
This works perfectly, at least with the 1.2 installer CD for 8.0; it
seems to me a lot simpler as nothing had be written down (and those
spaces are a bugger!) and typed in correctly.