There are some “interesting” issues being raised due to an incompatibility between e2fsprogs and GRUB legacy that results in non-booting systems. Newer versions of e2fsprogs default to creating new Ext3 filesystems with 256-byte sized inodes, instead of the old default of 128. GRUB legacy has absolutely no clue what to do with 256-byte inodes, so it barfs up the “Error 2: unknown file or directory type” message and sits back down. GRUB legacy will not be patched to support 256-byte inodes. Yay! But this is a transitional problem; read all about it here:

GRUB vs. the Inodes: Who Needs a Bootable System, Anyway?