Comment 2 for bug 889650

Thanks for that speedy fix. I didn't get around to testing it though :(

Anyway, there is a slight difference still. This is the real install:
menuentry 'Ubuntu, with Linux 3.2.0-1-generic (recovery mode)' --class
ubuntu --class gnu-linux --class gnu --class os {
        recordfail
        insmod gzio
        insmod part_msdos
        insmod ext2
        set root='(hd0,msdos8)'
        search --no-floppy --fs-uuid --set=root
02d7ccaf-7f53-4364-9ffa-2cb288f1b124
        echo 'Loading Linux 3.2.0-1-generic ...'
        linux /vmlinuz-3.2.0-1-generic
root=UUID=ba591735-99eb-40da-9160-6778fe07860b ro recovery nomodeset
        echo 'Loading initial ramdisk ...'
        initrd /initrd.img-3.2.0-1-generic
}

And this is the Wubi one:
menuentry 'Ubuntu, with Linux 3.2.0-1-generic (recovery mode)' --class
ubuntu --class gnu-linux --class gnu --class os {
        set gfxpayload=$linux_gfx_mode
        insmod part_msdos
        insmod ntfs
        set root='(hd0,msdos3)'
        search --no-floppy --fs-uuid --set=root 18B4B7BBB4B799A8
        loopback loop0 /ubuntu/disks/root.disk
        set root=(loop0)
        echo 'Loading Linux 3.2.0-1-generic ...'
        linux /boot/vmlinuz-3.2.0-1-generic root=UUID=18B4B7BBB4B799A8
loop=/ubuntu/disks/root.disk ro recovery nomodeset
        echo 'Loading initial ramdisk ...'
        initrd /boot/initrd.img-3.2.0-1-generic
}

Anyway... I was trying to boot the wubi recovery and it just kept getting
stuck, displaying only "Loading initial ramdisk...". Nothing i did made a
change except when I hit ESC it continued to the lightdm logon. And after
removing "set gfxpayload=$linux_gfx_mode" it booted correctly into the
Read-only recovery menu (which it does on the normal install).

Looking at the scripts, 10_linux has:
  if ! ${recovery} ; then
      save_default_entry | sed -e "s/^/\t/"

      cat << EOF
 set gfxpayload=\$linux_gfx_mode
EOF
  fi

whereas 10_lupin has:
  if ! ${recovery} ; then
      save_default_entry | sed -e "s/^/\t/"
  fi

  cat << EOF
set gfxpayload=\$linux_gfx_mode
EOF

Thanks