It is never stated that UBCD supports the grub2 loopback iso feature.
UBCD supports grub4dos and MEMDISK iso booting (uses INT13h for accessing the iso). The grub2 loopback device works different. It can only read some files inside the iso and boot them. This is only useful for linux ISO's, where you can read the kernel and initrd from the iso image and boot it.
MEMDISK and grub4dos can be booted from grub2
Code:
menuentry "UBCD with MEMDISK" {
linux16 /memdisk iso raw
initrd /ubcd502.iso
}
menuentry "UBCD with grub4dos" {
linux16 /grub.exe --config-file="map (rd) (hd32); map --hook; root (hd32); chainloader (hd32);"
initrd /ubcd502.iso
}
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Download
Ultimate Boot CD v5.0:
http://www.ultimatebootcd.com/download.htmlUse
Parted Magic for handling all partitioning task:
http://partedmagic.com/