the boot manager has been installed to /dev/hdh which seems from his name to be my C: Drive under WinXP (the 6GB HDD)
has the boot manager to be installed on the same partition as winxp, means /dev/hdh1 instead of /dev/hdh ?
My newbie opinion, since nobody else has responded to your post is this:
You should have the boot manager on the primary master, and the bootmanager config file should have the list of bootable operating system paths in it. It sounds to me like your boot manager doesn't know what to load. I'm not sure how this works because I use lilo, but if all else fails there might be a way to install linux first, then install windows xp. From there you could edit the grub config file, (if it even has one o.O, it must though) to point to windows xp?