Everything between step VII and step X is in the chroot. Everything else is outside of it. It seems counter intuitive to configure grub or lilo from outside the chroot but it works best this way.
As for /etc/grub/menu.lst well that was a typo.
It should have read: /mnt/buildroot/boot/grub/menu.lst
re: when are we chroot and when are we not ?
Everything between step VII and step X is in the chroot. Everything else is outside of it. It seems counter intuitive to configure grub or lilo from outside the chroot but it works best this way.
As for /etc/grub/menu.lst well that was a typo.
It should have read: /mnt/buildroot/boot/grub/menu.lst
Fixed now for future reference.
Thanks for catching that.