Wubi uses an old version of grub4dos to boot that cannot read (hangs up on) ext4 partitions. If a user migrates to /dev/sda1, then trying to boot Wubi (from Windows) no longer works.
Potential fixes - if target is lower than partition containing /wubildr, then force it to be ext3.
Note: this doesn't affect the migration. Only if the user decides not to install the Grub2 bootloader.
Fix: from Windows, format the partition as ntfs. This will allow Wubi to boot again.