Ok i have seen MANY tutorials on using GRUB to dual boot, and i am confused. What id like to do is edit the boot.ini file to include Ubuntu on my second HDD.

Currently i have 2 HDD's with Windows XP on Disk 0 and Ubuntu on Disk 1. My boot.ini appears as follows:

[boot loader]
timeout=30
default=multi(0)disk(0)rdisk(0)partition(2)\WINDOWS

[operating systems]
multi(0)disk(0)rdisk(0)partition(1)\WINDOWS="Microsoft Windows XP Home" /noexecute=optin /fastdetect
multi(0)disk(1)rdisk(0)partition(1)\WINDOWS="Ubuntu 8.10 Interpid Ibex" /fastdetect /NoExecute=OptIn

This is returning errors probably related to the "\WINDOWS" section of the second entry which tells the system where the OS is located in the filesystem. What do i need to do to fix this?

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:

http://www.linux.com/articles/113945

Not quite - you need to copy the boot sector record from a partition that has had grub/lilo installed into it rather than the MBR.
The referenced article covers all this quite well.

I suspect this will require a re-install of grub as the default for Ubuntu is to install to the MBR.

you will first need to use the " dd " command to make a .bin file of the ubuntu grub
something like this
My command for fedora 9
this is a fedora help page but will work for ubuntu