Ubuntu 12.04 Upgrade Issue: init: No available ptys

I've recently tried to upgrade to 12.04, but received this "init: No available ptys" looping message upon reboot of the server.

It's a known issue which is apparently resolved for most people by passing a kernel command line parameter at boot ("–no-log") and then updating the GRUB configuration file with this same kernel parameter.

As I understand it, the way one is supposed to update the grub.cfg file is to:
* Edit the "/etc/default/grub" file to add the parameters
* Run the update-grub command (a stub for sudo grub-mkconfig -o /boot/grub/grub.cfg) which makes a new config file.

I am able to use Finnix to boot and mount my drive and I've successfully edited the /etc/default/grub file to add the "–no-log" kernel parameter.

The part I'm hung up on is exactly how to run the update-grub command in the Finnix environment. I've looked for the grub-mkconfig file to see if I could run it that way, but have had no success.

Any suggestions? Any other ways to pass kernel parameters in this situation?