This is a duplicate of http://bugs.debian.org/463123
When starting LFS-6.3 build from a very new system (that has the latest e2fsprogs that make 265-byte inodes by default with mke2fs--I think that LFS SVN does expose the issue), one will not be able to install GRUB as a boot loader. The log is:
grub> root (hd0,0)
Filesystem type is ext2fs, partition type 0x83
grub> setup (hd0)
Checking if "/boot/grub/stage1" exists... no
Checking if "/grub/stage1" exists... no
Error 2: Bad file or directory type.
There is a patch for GRUB to add such support: http://bugs.debian.org/cgi-bin/bugreport.cgi?msg=15;filename=grub-support-256byte-inode.diff;att=1;bug=463123
This patch should be mentioned on the errata page for LFS-6.3. However, in order to avoid such bugs in the future, I would prefer for LFS-7.0 to switch to LILO that defers all filesystem operations to the kernel and thus is guaranteed to work with all future versions of {e2,anyother}fsprogs.