I do not like grub-install...it does not give correct feedback.
when you boot that live cd again try
Code:
su
grub
root (hdx,y)
setup (hd0)
quit
read my signature on what numbers to use for x and y....but if / is on hda1 they are 0,0
when grub is issued...and your live cd has no grub error will be command not found
at end of setup....you should see a message about embedding grub and the word succeeded.