Well that wasn't a very helpful post EDDY1 - obviously grub2 was already installed and had done the os-prober.
The fact that it isn't correct is unsurprising - for either Ubuntu or grub2.
I installed Windows 7 on a seperate 74GB HDD but it appears that it installed the bootloader over top of the Windows XP bootloader on the 250GB HDD. Both OS's booted fine and that point.
That is working as "designed" for Windows - laughingly called "dual boot". Later versions (since Vista , maybe Win2k) replace the prior version - in the partition of the prior release. So you continue to boot that. With both grub and lilo you merely chainload to that and let the Windoze loader handle things.
Looks like grub2 is trying to chainload to the wrong partition.
Do you have a boot-able system at all - and if so, what is in the MBR, lilo or grub ?.