It seems I misunderstood the article I had referenced. I emailed the author of that article for clarification and his response (partially) is below. My apologies to the members of the list for this mistake I have made.
"Actually, the kernel there is being loaded by TFTP, although HTTP can also be used.
The "kernel" line uses HTTPURL, which is just the path to the kernel file on the web server. The appended options tell that kernel to use the NFS filesystem, which provides access to the rest of the XUbuntu install CD files.
This section serves as an example of network-mounting the filesystem, rather than copying an image of a filesystem into memory on the target computer and running it from there. It starts faster because the image does not have to be copied, and can run on computers with less RAM because the whole filesystem does not occupy memory."
Grub already supports HTTP. Did you try it?
Not yet. I was planning on getting around to that, but I had wanted to clarify the "NFS option" first. Can you advise what the syntax is for HTTP booting the kernel with loopback? Like this for example?