Dear all,
I have met the same trouble. It is because that FC3 automatically mounts your ext3 partition at position /1, not / . So, GRUB can not continue with stage2. This always occurs when you install FC3 on existing / volume. Just install it again and mount the partition at / instead of /1 , it works.
I believe you mixed up ext[23] file system labels and mount points. The label will be /1 (in an pitty attempt to make labels uniq if you have an old installation on some other partition), but the mount point for it will be /. Check fstab and grub.conf files, and you'll see that reference for partition is /1, but reference for root mount point is /.
-- Aleksandar Milivojevic <amilivojevic@xxxxxx> Pollard Banknote Limited Systems Administrator 1499 Buffalo Place Tel: (204) 474-2323 ext 276 Winnipeg, MB R3T 1L7