That line [i]rootnoverify(hd1,0) suggests that you have your Windows disk as primary slave - do you have two harddrives? Also, there should not be a space between the hd and the 1 in that line.
If you can boot into Linux, then issue this command: fdisk -l
(as root) and find the partition/drive that has Windows installed on it. Ues the following to identify the grub partitiion naming from the Linux partition naming scheme:
Linux - Grub
hda1 - hd0,0
hda2 - hd0,1
hda3 - hd0,2
hdb1 - hd1,0
hdb2 - hd1,1
hdb3 - hd1,2
Once you've found your Windows and discovered the Grub partition name for it, edit the file (as root) /etc/grub.conf
and change the line to reflect your findings.