ok I have just converted to sidux whick also used default 256 inode.
But this very informative link....says old live cds....trying to rescue a broken grub will fail.
(section under grub)
I tested this myself and lo it is broke....if you use the wrong (old live cd)
There are work arounds that include.....lilo handles 256 inodes, format as xfs etc and not ext2 ext3
AND the easiest work around of the lot....heh heh is to use a recent sidux cd or dvd as a rescue cd/dvd.