I have a desktop where I dual-boot Windows XP and Lubuntu. Given that Wubi makes use of Windows Boot Menu, If I install Ubuntu 12.04 from Wubi installer on Windows, will it be present on Grub Menu? Will there be any conflict between Wubi and Grub Menu?
No, it won't conflict but Wubi won't show up in Grub either. Wubi adds itself to the Win XP boot menu, so to boot Wubi the process would be: