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I get this once typing sudo update-grub:

$ sudo update-grub
error: syntax error.
error: Incorrect command.
error: syntax error. Syntax error at line 261
Syntax errors are detected in generated GRUB config file.
Ensure that there are no errors in /etc/default/grub and /etc/grub.d/* files or please file a bug report with /boot/grub/grub.cfg.new file attached.

Contents of /etc/default/grub:

# If you change this file, run 'update-grub' afterwards to update
# /boot/grub/grub.cfg.
# For full documentation of the options in this file, see:
#   info -f grub -n 'Simple configuration'
GRUB_DISTRIBUTOR=`lsb_release -i -s 2> /dev/null || echo Debian`
# Uncomment to enable BadRAM filtering, modify to suit your needs
# This works with Linux (no patch required) and with any kernel that obtains
# the memory map information from GRUB (GNU Mach, kernel of FreeBSD ...)
# Uncomment to disable graphical terminal (grub-pc only)
# The resolution used on graphical terminal
# note that you can use only modes which your graphic card supports via VBE
# you can see them in real GRUB with the command `vbeinfo'
# Uncomment if you don't want GRUB to pass "root=UUID=xxx" parameter to Linux
# Uncomment to disable generation of recovery mode menu entries
# Uncomment to get a beep at grub start
#GRUB_INIT_TUNE="480 440 1"

Can someone please shed some light on this, I am new to Ubuntu and having problems.

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please edit your question and include the file /etc/default/grub –  Tarun Nov 19 '13 at 8:10
@DuminduMahawela please when adding formatting try to keep the text intact. Some important # where removed –  Braiam Nov 19 '13 at 15:14
Ok. I got the point. I will avoid that. –  Dumindu Mahawela Nov 19 '13 at 15:23
I have added the /etc/defualt/grub file, does anyone know what it means? –  user216031 Nov 20 '13 at 5:11
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