I find on my system that if I rename my existing /boot/grub/grub.conf then execute
expand-template /boot/grub/grub.conf I end up with a 0 byte file. This sounds like a bug to me...
I think you could fix your grub.conf using:
pico -w /boot/grub/grub.conf
Then copy and paste the following into it:
# grub.conf generated by anaconda
#
# Note that you do not have to rerun grub after making changes to this file
# NOTICE: You have a /boot partition. This means that
# all kernel and initrd paths are relative to /boot/, eg.
# root (hd0,0)
# kernel /vmlinuz-version ro root=/dev/vg_primary/lv_root
# initrd /initrd-version.img
#boot=/dev/sda
default=0
timeout=5
splashimage=(hd0,0)/grub/smeserver.xpm.gz
foreground 000000
background 4E95D3
hiddenmenu
title SME Server (2.6.9-55.0.12.ELsmp)
root (hd0,0)
kernel /vmlinuz-2.6.9-55.0.12.ELsmp ro root=/dev/vg_primary/lv_root
initrd /initrd-2.6.9-55.0.12.ELsmp.img
title SME Server (2.6.9-55.0.12.EL)
root (hd0,0)
kernel /vmlinuz-2.6.9-55.0.12.EL ro root=/dev/vg_primary/lv_root
initrd /initrd-2.6.9-55.0.12.EL.img
Then run
expand-template /boot/grub/grub.conf to hopefully set the correct kernel version for your system...
Also, my server has two CPUs, so I think the line 'default=0' tells my system to boot the 0th entry
SME Server (2.6.9-55.0.12.ELsmp). If you have a single CPU that does not have hyperthreading or multiple cores you may need to change 'default' to 1.
I've opened a bug on 'expand-template /boot/grub/grub.conf':
http://bugs.contribs.org/show_bug.cgi?id=3545