For comparison I ran grub2config-2.0.8_1 in a terminal on a KLV-Boxer which works well enough to install the boot loader and construct a boot menu. If Puppy Linux variants are in the search path it finds them and writes a working menu.lst.
The errors are from looking for Puppy Linux components and not finding them as expected.
For KLV's there is a script: wd_grubconfig
that will generate the proper boot stanza's.

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I would like to somehow combine grub2config
and wd_grubconfig
. To add in grub2config identifying a KLV and suggesting boot stanza's tailored for Kennel Linux installations as well.
As it is though it is totally usable and easy to manually copy the wd_grubconfig
generated boot stanza's over to the grub.cfg
and or menu.lst
Even though the terminal shows errors grub2config worked on KLV-Boxer and installed a boot loader and a working menu.
Not the same luck though on a virt-manager
libvirt
machine. It can't see /dev/vda1
, formatted ext3 and the boot flag set, for some reason.