This is returning errors probably related to the "\WINDOWS" section of the second entry
I don't think so. Actually, the part of the entry prior to this tells the system where to look and the part after windows is more like the title line in Grub, just what appears on your screen. Not really sure about that though.
Anyhow, you missed a couple of steps. You need to copy the mbr from your Ubuntu drive to a file and then to the root of the windows drive and also put an entry in your xp boot.ini file. Take a look at this site for details: