Ubuntu – No effect after editing grub.cfg & updating it

I've reached a dead end in this matter & I was wondering if someone out there could help me out.

I located the grub file located in etc/default and edited it following reliable instructions. After I do & run the sudo update-grub & reboot, nothing changes & it stays the same.

I even have an application called "start-up manager" to simply adjust let's say the time-out, sadly that didn't work either.

Could someone help me out?

Note: I do have this thing called burg to have a GUI when booting, but even before I installed it the problem was there.

Here's my grub.cfg:

# If you change this file, run 'update-grub' afterwards to update
# /boot/grub/grub.cfg.

GRUB_DEFAULT=0
#GRUB_HIDDEN_TIMEOUT=0
GRUB_HIDDEN_TIMEOUT_QUIET=true
GRUB_TIMEOUT=1
GRUB_DISTRIBUTOR=`lsb_release -i -s 2> /dev/null || echo Debian`
GRUB_CMDLINE_LINUX_DEFAULT="quiet splash"
GRUB_CMDLINE_LINUX=" vga=775"

# Uncomment to enable BadRAM filtering, modify to suit your needs
# This works with Linux (no patch required) and with any kernel that obtains
# the memory map information from GRUB (GNU Mach, kernel of FreeBSD ...)
#GRUB_BADRAM="0x01234567,0xfefefefe,0x89abcdef,0xefefefef"

# Uncomment to disable graphical terminal (grub-pc only)
#GRUB_TERMINAL=console

# The resolution used on graphical terminal
# note that you can use only modes which your graphic card supports via VBE
# you can see them in real GRUB with the command `vbeinfo'
#GRUB_GFXMODE=800x600

# Uncomment if you don't want GRUB to pass "root=UUID=xxx" parameter to Linux
#GRUB_DISABLE_LINUX_UUID=true

# Uncomment to disable generation of recovery mode menu entries
#GRUB_DISABLE_LINUX_RECOVERY="true"

# Uncomment to get a beep at grub start
#GRUB_INIT_TUNE="480 440 1"

Files in etc/grub.d:
00_header, 05_debian_theme, 10_linux, 20_linux_xen, 20_memtest86+, 30_os-prober, 40_custom, 41_custom, readme

boot/grub/grub.cfg

http://pastebin.ubuntu.com/538608/