Hi,
I assume you are facing this problem after doing the installation and not while running it off the live cd.
I don't remember facing this problem myself. But this problem really means grub is unable to see the partition or drive that linux is located on.
I would like to suggest two things,
While installing nepalinux, after installation, in the first reboot it like about 5 - 7 minutes to update kernel and other packages, the system really is available in the second reboot only.
There are two different installers. One for ATA and other for SATA harddisk, make sure you choose the right installer for installation.
Please feel free to ask or call me at the office. at 5521393.
Regards,
Basanta Shrestha
MPP