Finally I realized that using grub you can not upgrade to F17. If you use pre upgrade then you will realize that it writes everything in grub2! So old grub is valid till F16.
So if you want to upgrade to F17, make sure your computer is booting from grub2 in fedora 16. Also making grub2 to work need some more pain. You may be required to increase your /boot partition size.
goodluck