OK, I decided to try and boot this from the grub command line. Here's what I got:
Code:
> insmod loopback
> insmod ntfs
> loopback loop /boot/isos/lucid-desktop-i386.iso
> linux (loop)/casper/vmlinuz boot=casper iso-scan/filename=/boot/isos/lucid-desktop-i386.iso quiet splash noprompt --
> initrd (loop)/casper/initrd.lz
Device loop: Unknown filesystem
OK, so Lucid is a no-go. Maybe a bad ISO?
Code:
> loopback loop /boot/isos/LinuxMint-8.iso
> linux (loop)/casper/vmlinuz boot=casper iso-scan/filename=/boot/isos/LinuxMint-8.iso quiet splash noprompt --
error: invalid magic number
Does it take magic numbers to make this happen?! 
Maybe that'll help someone debug this. It's Greek to me.
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