wubi does not install grub and neither correctly copies the modules of grub

[Abhishek Dixit]

Here is a situation 1 week back I had asked in this list about a clean
way to install Ubuntu on a friends laptop and how to uninstall.
I have installed and things worked by now perfectly without any problem.
We are trying to set up a Xen (virtualization)environment in this
laptop as this is the only piece of good hardware with VT support in
built available to us.
After setting up every thing cleanly.
When I needed to boot with following grub entries

menuentry "Xen Linux 2.6.32.27" {
       insmod ntfs
       set root='(hd0,2)'
       loopback loop0 /ubuntu/disks/root.disk
       set root=(loop0)
       multiboot /boot/xen.gz
       module    /boot/vmlinuz-2.6.32.27 dummy=dummy root=/dev/sda2
loop=/ubuntu/disks/root.disk ro console=tty0
       module    /boot/initrd.img-2.6.32.27
}

I got
error:file not found.
when booting and command multiboot ,kernel,module are not present.

Now to dig this issue further I reboot the machine and go to grub command prompt

and manually pass on each of the above parameters which you see in the
grub entry
when I reached
grub> insmod multiboot
then I got following message on screen
error:file not found.

It looks like my  grub setup has just enough modules to use loopback
file on ntfs, but the ACTUAL /boot directory is on the loopback NOT
ntfs (hd0,2). Therefore any attempt to read any files from (hd0,2)
simply wont work, cause there's no file there.It's a somewhat
advanced setup, I am trying to troubleshoot ntfs-loop-xen
combination.This is not Xen-specific, but rather wubi - grub -
multiboot
issue.I want to know how can I install the missing modules of grub in Wubi?
I need to use insmod multiboot and commands kernel,module available in
grub in this Ubuntu setup which was done using Wubi.


I searched on internet and
http://ubuntuforums.org/showthread.php?t=1546788
it seems Wubi simply does not installs grub based on above link,
http://ubuntuforums.org/showthread.php?t=1546603
So my question is what is happening is Wubi booting or grub booting in
this installation from Wubi and why are the files in /boot/grub
directory empty?
While a normal Kernel is still booting?
How can I get module multiboot in this Wubi based install.
Since the laptop is given to me on trust so I can not format drives
and use a usual partition without Wubi type setup so any clues what
should I do in this situation?

-- 

Regards
Abhi