grub2 - error: you need to load kernel first

I made a clean install on my Sony Vaio laptop, of Ubuntu 11.10 and when the installation was ready, it prompted to remove the USB I was installing the distro from, and press enter to reboot. After this reboot the first thing I got was the following error:

error: couldn't read file
error: you need to load the kernel first
Press any key to continue..

After that it throws me back to the Grub select screen:

Ubuntu, with linux 3.0.0-14-generic-pae
recovery mode
previous Linux versions (none since I made a clean install)
memory test

If I choose the first option it shows only a black screen and never loads anything.
If I reboot the same thing happens.

Could I repair this using boot-repair?
Is there any other way?

Note: I know nothing about Linux code so I am a total noob on this one

Update: boot-repair did not help

Grub.cfg here: http://pastebin.com/GKLuDuhM

Boot Info Script: http://pastebin.com/indARkKJ