GRUB Error 16: Inconsistent filesystem structure when try to load core in Genode/NOVA demo

[Bill Chappell]

I am trying to run the Genode(12.08)/NOVA demo as a boot option under
Legacy GRUB following the "official" Genode instructions.
When GRUB executes the line "module <path>/core", it halts
with Error 16 as in the subject line.  Also if I use full paths, no 
symlinks.
When I edit the Genode Demo entry as GRUB runs and delete everything
below the "kernel hypervisor" line, NOVA loads, reports 2 cores, and halts
because "no ELF".
"file core" reports that core is a 32 bit ELF.
I have successfully run the Genode demo on top of Ubuntu 12.04 LTS and the
Genode/NOVA demo on top of Ubuntu 12.04 LTS.
GRUB savedefault is false.
I tried the patch to stage2/fsys_iso9660.c with no luck.
I have used both an IBM ThinkCentre and an HP laptop (6530b) with both
Legacy GRUB and Legacy GRUB with Trusted GRUB patches.
"The Google" is out of suggestions.
Thank you.