Description of problem:
I have upgraded my F7 to F8 Test 3 and chose to create a new boot loader
configuration during install. During the first reboot after update, the system
didn't boot successfully due to obsolete grub entry left after previous system
which was pre-selected by default (error message stated that the kernel image
cannot be found). After manually choosing the new F8-base kernel from the boot
menu the system started sucessfully. I was able to reproduce this issue on two
different computers that were originally running Fedora 7.

Version-Release number of selected component (if applicable):
anaconda-11.3.0.36-1

How reproducible:
Reproduces on two different computers. Cannot test it with rawhide image because
after the upgrade I don't have my F7 installations anymore :)

Steps to Reproduce:
1. Select Upgrade option during F8 Test 3 installation.
2. Choose to create a new boot loader configuration.
3. After upgrade process is complete, system won't start as the kernel entry
from previous system is present and automatically selected in the grub boot menu.
  
Actual results:
Cannot find kernel image error message

Expected results:
Boot the new system's kernel. Old kernel entry should be erased as the old
kernel no longer exists.