I bit the bullet like I said in previous post & encountered a few problems in chroot environment.
I couldn't run update-grub, apt-get nor aptitude without encountering error: Command not found.
I obviously screwed-up my bash_profile.
Anyway here are 2 of the 3 errors that I remember
dpkg: warning: 'ldconfig' not found in PATH or not executable.
dpkg: warning: 'start-stop-daemon' not found in PATH or not executable.
dpkg: error: 2 expected programs not found in PATH or not executable.
Somehow during chroot my ldconfig was changed to /mnt/lfs/var.
System was still bootable then, but would not update-grub to boot lfs even though it saw it. trying sudo update-grub saw it but wouldn't write the file after generating grub.cfg.
Since grub wouldn't update I decided to chroot LFS & install grub there. I installed grub & created grub.cfg & rebooted to kernel panic so now I have an unbootable system.
I was however able to repair by booting my debian wheezy usb installation which had my squeeze already in it's grub.