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I have 320GB HDD messed with Ububtu 10.04 and Windows Developers preview. I formated Windows partition and deleted the Linux boot folder from the disk, I thought it may help me to install newer version of Linux because my Windows installation was messed up with a problem and I can't install Windows on Linux .

Now I get a grub rescue terminal and after searching a lot I got someway out but there was another a problem when I insert the windows 7 disc. It does not give anything just a paused Starting Windows screen. I tried the Ubuntu Live CD but same problem occurred so I starting to mess with GRUB rescue terminal when I ran the commands:

set root=(hd0,12)
set prefix=(hd0,12)/boot/grub
insmod /boot/grub/linux.mod

I got the message file not found

How would I fix this problem?

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This is a very common problem among new users of Ubuntu (or Linux for that matter). I did it once :D

GRUB is a boot-loader (all OSs have them, Windows' boot loader just auto-boots into Windows) and its files are stored in the same partition as Ubuntu. When you deleted the Ubuntu partition it removed those files.

Simple fix? Reinstall Ubuntu from USB or the Live CD. This will fix the GRUB files and your system should work again (that's how I fixed my problem.)

Upgrading Ubuntu should have nothing to do with the Windows, so you can just run the command sudo apt-get update && sudo apt-get upgrade && do-release-upgrade from the terminal.
This will check for any and all updates/upgraded programs and update/upgrade them.
The do-release-upgrade command checks to see if there is a new version of Ubuntu (eg. 12.04 to 12.10) and then will allow you to upgrade it.

As this is a very common error, there are plenty of questions similar/duplicate of yours. Here are a couple duplicates that might help you:

How can I repair grub? (How to get Ubuntu back after installing Windows?)

Grub rescue - error: unknown filesystem

Ubuntu boot grub rescue

Just search for grub-rescue or corrupted GRUB. You should find something of use on the site. If nothing pops up here, Google it (oh the joys of the Internet)! :D

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