Your spacing in that script looks a mess. For example, what
is -eecho supposed to be? i am sure it should be -e echo. is that actuall
as the script is? There should be spaces after EOF (hd0,5) etc.

Past that, I am not going to be of much help. I saw grub2 was still in
beta back when Ubuntu tried to switch me to it back in 9.10. I reinstalled
Grub Legacy and that is still what I use. Much easier to maintain and
deal with, IMO. You should check the grub2 documentation on the Ubuntu
wiki though or other grud2 documentation.

Some things to remember: even if properly configured, the scritp must be
executable, and you must run the update grub command.