savedefault is not working?

[Peter]

Hello .

There are many bugs in gentoo land with grub, so all users have to seat
with old grub-0.94 before we could fix some of them and then commit
grub-0.96 into our package tree.

I'd like to bug report, but previosly I want to gather more
information. May be there is just my misunderstanding/misconfiguration...

There was a bug, in bugs.gentoo.org, concerning grub's savedefault
feature:
http://bugs.gentoo.org/show_bug.cgi?id=63445

That was in grub-0.95. Now I have grub-0.96 installed. I've tried to
reproduce mentioned above bug. so I've created grub.conf like this:

timeout 30
default saved
fallback 1
splashimage=/grub/splash.xpm.gz

# For booting GNU/Linux
title  GNU/Linux
root (hd0,1)
kernel /vmlinuz root=/dev/hda6 lapic=on
savedefault 1

# For booting Windows NT or Windows95
title Windows XP SP2
rootnoverify (hd0,0)
makeactive
chainloader  +1
savedefault

But any attempt to boot any of that ends with an:
Error 1: Filename must be either an absoulute pathname or blocklist.

If I understand correctly the output before this error grub proces root
and kernel instructions without errors, but fails on the savedefault.