Don't worry about the 'ext2' in the message, it's misinformation from GRUB 2. The GRUB 2 messages you quoted are to be expected (see the same messages quoted in my fourth post
in Gentoo Forums thread GRUB 2 wrongly using /boot/grub/ instead of /boot/grub2/
*). To give you a little background: the first stage code of GRUB 2 occupies more space in the MBR than the first stage code of GRUB Legacy (or in a partition boot sector, if you use a partition boot sector instead of the MBR), so the GRUB 2 developers display those messages to try and dissuade people from putting the first stage code of GRUB 2 in anything other than the MBR, as the size of a partition boot sector is relatively small. However, in practice there is no problem with GRUB 2 if you do this. I also put GRUB 2 code in a boot sector rather than the MBR (see, e.g., The best way to dual boot Linux and Windows
), and so do many other people.
* GRUB 2 in Gentoo is different to GRUB 2 in SL (the directories and some commands are different). Nevertheless you might find that Gentoo thread instructional, as it gives an understanding of how GRUB 2 (and EasyBCD) works.
Regarding the 'Gentoo Base System' entry you are seeing in the GRUB 2 menu, you can either edit /boot/grub/grub.cfg to change it to whatever you want, or you can edit or add a script in /etc/grub.d/ and use the command 'grub-mkconfig -o /boot/grub/grub.cfg' to generate a new grub.cfg file, but the former method is easier (albeit needs to be repeated if you subsequently run grub-mkconfig to generate a new grub.cfg file for any other reason).