What happens if you press "SHIFT" during boot?

Secondly, is your GRUB installation still broken?

It seems you have fixed your boot problem, or did you reinstall everything?

Is you host still on /dev/sda1 and LFS on /dev/sdb1?

Did you make sure that the LFS kernel/system.map/config files are present in /mnt/lfs/boot (or /boot from within the chrooted environment)

 If you need to, take pictures of them, and post the pictures to a free picture-sharing site.

 maybe post grub.cfg from lfs

and host grub.cfg

#
# DO NOT EDIT THIS FILE
#
# It is automatically generated by grub-mkconfig using templates
# from /etc/grub.d and settings from /etc/default/grub
#

### BEGIN /etc/grub.d/00_header ###
if [ -s $prefix/grubenv ]; then
  set have_grubenv=true
  load_env
fi
set default="0"
if [ "${prev_saved_entry}" ]; then
  set saved_entry="${prev_saved_entry}"
  save_env saved_entry
  set prev_saved_entry=
  save_env prev_saved_entry
  set boot_once=true
fi

function savedefault {
  if [ -z "${boot_once}" ]; then
    saved_entry="${chosen}"
    save_env saved_entry
  fi
}

function recordfail {
  set recordfail=1
  if [ -n "${have_grubenv}" ]; then if [ -z "${boot_once}" ]; then save_env recordfail; fi; fi
}

function load_video {
  insmod vbe
  insmod vga
  insmod video_bochs
  insmod video_cirrus
}

insmod part_msdos
insmod ext2
set root='(hd0,msdos1)'
search --no-floppy --fs-uuid --set=root 9d23a708-c101-428e-9443-77455bd0e1de
if loadfont /usr/share/grub/unicode.pf2 ; then
  set gfxmode=auto
  load_video
  insmod gfxterm
  insmod part_msdos
  insmod ext2
  set root='(hd0,msdos1)'
  search --no-floppy --fs-uuid --set=root 9d23a708-c101-428e-9443-77455bd0e1de
  set locale_dir=($root)/boot/grub/locale
  set lang=en_US
  insmod gettext
fi
terminal_output gfxterm
if [ "${recordfail}" = 1 ]; then
  set timeout=-1
else
  set timeout=10
fi
### END /etc/grub.d/00_header ###

### BEGIN /etc/grub.d/05_debian_theme ###
set menu_color_normal=white/black
set menu_color_highlight=black/light-gray
if background_color 44,0,30; then
  clear
fi
### END /etc/grub.d/05_debian_theme ###

### BEGIN /etc/grub.d/10_linux ###
if [ ${recordfail} != 1 ]; then
  if [ -e ${prefix}/gfxblacklist.txt ]; then
    if hwmatch ${prefix}/gfxblacklist.txt 3; then
      if [ ${match} = 0 ]; then
        set linux_gfx_mode=keep
      else
        set linux_gfx_mode=text
      fi
    else
      set linux_gfx_mode=text
    fi
  else
    set linux_gfx_mode=keep
  fi
else
  set linux_gfx_mode=text
fi
export linux_gfx_mode
if [ "$linux_gfx_mode" != "text" ]; then load_video; fi
menuentry 'Ubuntu, with Linux 3.0.0-12-generic' --class ubuntu --class gnu-linux --class gnu --class os {
	recordfail
	set gfxpayload=$linux_gfx_mode
	insmod gzio
	insmod part_msdos
	insmod ext2
	set root='(hd0,msdos1)'
	search --no-floppy --fs-uuid --set=root 9d23a708-c101-428e-9443-77455bd0e1de
	linux	/boot/vmlinuz-3.0.0-12-generic root=UUID=9d23a708-c101-428e-9443-77455bd0e1de ro   quiet splash vt.handoff=7
	initrd	/boot/initrd.img-3.0.0-12-generic
}
menuentry 'Ubuntu, with Linux 3.0.0-12-generic (recovery mode)' --class ubuntu --class gnu-linux --class gnu --class os {
	recordfail
	insmod gzio
	insmod part_msdos
	insmod ext2
	set root='(hd0,msdos1)'
	search --no-floppy --fs-uuid --set=root 9d23a708-c101-428e-9443-77455bd0e1de
	echo	'Loading Linux 3.0.0-12-generic ...'
	linux	/boot/vmlinuz-3.0.0-12-generic root=UUID=9d23a708-c101-428e-9443-77455bd0e1de ro recovery nomodeset 
	echo	'Loading initial ramdisk ...'
	initrd	/boot/initrd.img-3.0.0-12-generic
}
### END /etc/grub.d/10_linux ###

### BEGIN /etc/grub.d/20_linux_xen ###
### END /etc/grub.d/20_linux_xen ###

### BEGIN /etc/grub.d/20_memtest86+ ###
menuentry "Memory test (memtest86+)" {
	insmod part_msdos
	insmod ext2
	set root='(hd0,msdos1)'
	search --no-floppy --fs-uuid --set=root 9d23a708-c101-428e-9443-77455bd0e1de
	linux16	/boot/memtest86+.bin
}
menuentry "Memory test (memtest86+, serial console 115200)" {
	insmod part_msdos
	insmod ext2
	set root='(hd0,msdos1)'
	search --no-floppy --fs-uuid --set=root 9d23a708-c101-428e-9443-77455bd0e1de
	linux16	/boot/memtest86+.bin console=ttyS0,115200n8
}
### END /etc/grub.d/20_memtest86+ ###

### BEGIN /etc/grub.d/30_os-prober ###
menuentry "Linux From Scratch (7.0) (on /dev/sdb1)"  {
	insmod ext2
	set root='(hd1,1)'
	linux /boot/vmlinuz-3.1-lfs-7.0 root=/dev/sdb1 ro
}
### END /etc/grub.d/30_os-prober ###

### BEGIN /etc/grub.d/40_custom ###
# This file provides an easy way to add custom menu entries.  Simply type the
# menu entries you want to add after this comment.  Be careful not to change
# the 'exec tail' line above.
### END /etc/grub.d/40_custom ###

### BEGIN /etc/grub.d/41_custom ###
if [ -f  $prefix/custom.cfg ]; then
  source $prefix/custom.cfg;
fi
### END /etc/grub.d/41_custom ###