I'm not 'heavy' on this, but here's a couple ideas: [I searched your whole loopback line]
http://askubuntu.com/questions/50029...from-grub-menu
I'd advise learning to use *grub's* `ls` (after using 'c' to get grub> command prompt)
to look for your "Boot medium". There's probably better terms, I searched: grub ls tutorial
http://www.linux.com/learn/how-rescu...g-grub-2-linux
I know zero about 'loop', but maybe research that (add it to search); here's a 'messy' one:
http://forums.mageia.org/en/viewtopi...=11364&p=66190 (might not be relevant: I don't know)
I'm wild-guessing you can do/simulate all this in VirtualBox (hmmm, a project for my studies!)
Maybe describe more about your 'distro' (the one you run, not Arya), (its working) grub.cfg, partitions, etc...