Actually its in both. stage1 is in the MBR and is just a small bit of code that loads stage2 which is found in /boot/grub. Stage2 is the program that displays the menu and all the other stuff that grub can do.

Having said that. Its my guess that the stage1 code was put in the MBR by the 2nd Ubuntu install. 1st thing on the list to do is put stage1 code back in the MBR that points to the stage2 program in the 1st ubuntu install.

Get a grub> prompt
Should return both stage2 locations looks like (hd0,2) (hd0,5) just an example. You need to figure out which one you need. Then lets say you want grub to boot stage2 in (hd05) you would do: (stiil from the grub> prompt)
reboot and see if that was the one. if not do it again with the other one.

Now you can figure out what to do with the space currenty use by Ubuntu install #2. But thats another question.

Okay, I'm back again guys. At this point, I do not care whether I keep the first or second Ubuntu. It seems there is a lot of theory and how-to in this forum. I'm not sure which I do and in what order. Would someone who knows what I should be doing write a step by step dummy version to remove one ubuntu, add the space to windows or other ubuntu (if can't add to windows), and make sure the bootloader is correct so I don't mess up my computer.

Thanks for all your continued help! This is a great community of great minds!

If it helps, here is my current gparted view:
http://yfrog.com/6hscreenshotdevsdagpartedp

If the problem is in grub stage2 (which I assume resides on partition of Ubuntu2), can't you boot the Ubuntu1, reinstall grub and then delete the partition of Ubuntu2?
I'm not shure because I've never used grub.

Anyone able to help?

I'd suggest using grub-install and re-installing grub to the partition that the original Ubuntu partition lays on. Unfortantly I have never had to do this myself so I am not entirely certain on the procedure.

Your output from GParted in the post above shows two ext3 partitions, sda7 which is a little over 2GB and sda5 which is 19GB. 2GB is a little small for any OS so I would suggest you use sda5. If you can boot into one of your Ubuntu partitions open a terminal and type:

sudo grub (should get grub prompt -grub>- after entering password)
root (hd0,4)
setup (hd0)
quit

This should put the stage1 file in the mbr of sda (hd0) pointing to (hd0,4)which is the same as sda5.

If you can re-boot into Ubuntu after doing this, it should be safe to delete the other partition (sda7) and one of your swap partitions.