grubby in rawhide says it can't find a suitable template and therefore won't update /boot/grub/grub.conf. This occurs whether or not dracut is installed (and, incidentally, if grubby is going to rely on dracut, then it should probably have a dependency on it in its spec file, which it apparently doesn't). Here's what's at the end of my /boot/grub/grub.conf file, which looks perfectly fine and I can't imagine why grubby's having trouble updating (and has had no trouble in the past): title Fedora (2.6.30-6.fc12.i686.PAE) root (hd0,0) kernel /boot/vmlinuz-2.6.30-6.fc12.i686.PAE ro root=LABEL=/ hdd=ide-scsi notsc initrd /boot/initrd-2.6.30-6.fc12.i686.PAE.img title Memtest86+ (2.11) root (hd0,0) kernel /boot/memtest86+-2.11 It appears that the initrd is created just fine -- I see it in /boot -- so it's just the grub.conf updating that isn't working.
This should be fixed with 7.0.1 that just finished building
on my machine, grubby-7.0-1.fc12.x86_64 does not fix this issue