Pointing to GRUB on the same disk
 

I have got 2 HDDs with Windows 98 installed of the primary disk and Windows XP on the secondary disk. Recently I installed Linspire on another partion in the primary disk. Now as a default I get the Windows boot-loader with the option to load into Windows 98 or Windows XP. So, I want a third option there to load into the Linux partition.

When you installed Linspire, did it offer to install a boot-loader?
What did you have before installing Linspire---ie did it still show you the two Winodws options?

Also--search here for several other threads on this topic--including how to dual-boot using Windows tools.

When I installed Linspire it didn't give me any option to choose any boot-loader, but after the initial intallation the GRUB boot-loader was installed.
Before installing Linspire I had two options to boot from -
1.Windows XP
2.Windows 98

Right-now I am using a MBR which was there before installing Linspire.

I want to add a third option in my current boot loader which can redirect the windows boot-loader to the GRUB boot-loader which is installed in the Linspire partion itself(I am assuming this).

Presumably you installed XP after Win98 - in which case I believe XP installs the ntldr; and with it (I assume) boot.ini.
You will need to "dd" the linux boot sector record across to your Windows system partition, and add an entry for it in boot.ini

Search here on LQ - must be hundreds of threads on this.

I didn't get what you meant by:
"dd" the linux boot sector record across to your Windows system partition.