I'm stabbing in the dark here---perhaps someone more knowledgeable will step in soon.....

When you boot up from the live CD, go to a terminal and enter "mount". We need to be sure that sda1 is not already mounted. Then try mounting it again using Saikee's instructions.

The easiest way out of this just MIGHT be re-installing everything (It has happened to all of us---many times in my case)

This usually indicates the boot loader can't find a valid partition to boot - it's just the loader code in a tight loop, but generally you'd expect a message first.This I think is coming from ntfs-3g, and indicates that sda1 is "dirty" - needs a (M$oft) chkdsk run on it.
If it were me I'd be booting the XP CD and getting into "recovery Console" (watch the messages on boot). From there you can run chkdsk, and also fixmbr which will re-install the M$oft loader in the MBR - presuming it can read sda1 o.k., as it does some checking for an installed version of Windoze.

The disgnose so far

Initially there was only a MS system
Partition Tragic was used to create a 4th partition
The MS system boundary might have changed
Hard disk doesn't boot now
The MS partition can't be mounted in Linux
Some permanent damage may have been inflicted because the filing indexing system has been shrunk and expanded.
No information on if the sda1 partition has been restored to the original boundary.

Recommendations

Use Windows installation CD to repair the partition.

I did a plain mount command and this popped up:

/dev/root on / type ext2 (rw)
/ramdisk on /ramdisk type tmpfs (rw,size=404216k,mode=755)
/UNIONFS on /UNIONFS type aufs (rw,br:/ramdisk:/KNOPPIX:/KNOPPIX2)
/dev/hda on /cdrom type iso9660 (ro)
/dev/cloop on /KNOPPIX type iso9660 (ro)
/dev/cloop2 on /KNOPPIX2 type iso9660 (ro)
/proc/bus/usb on /proc/bus/usb type usbfs (rw,devmode=0666)
/dev/pts on /dev/pts type devpts (rw)
/dev/sda1 on /media/sda1 type fuseblk (ro,nosuid,nodev,noatime,allow_other,blksize=4096)
/dev/sda2 on /media/sda2 type vfat (ro,nosuid,nodev,umask=000,shortname=winnt,uid=1000,gid=1000)

Does this mean that the device is already mounted? and if so why can't I boot into that partition?

If you can mount a partition that means the operating system, which is a Linux in this case, can read it content. This opens the possibility of extracting its content and your personal data can be salvaged.

Your sda1 is supposed to be a ntfs partition but for some reasons it wasn't mounted as such so I can't be sure if you can read its content. Only you would know by clicking it in the desktop the folder /media/sda1, or in the terminal mode issue the command
A partition readable in Linux means the filing system is still intact. If it doesn't boot then the boot loader may have been damaged or the MBR overwritten. If the system is healthy, with no damage to any of the system files, then any other boot loader, including Grub, can fire it up.

There may be a semantics issue here....When you are up and running (as you were when issuing the "mount" command), you would not "boot into a partition") Did you mean that you can not go into it using "cd"?

Anyone know what "fuseblk" means??

What if I were to create a GRUB boot commmand, then place it into each one of my partitions. Do you think that could work? and if so how should I write it?

Three things:

First: I think that OP's choice of terminology is confusing people. I also think this reflects OP's level of knowledge, so this is not a criticism, just a warning.

Second: the error about the dirty bit set...cannot mount partition...blah blah blah comes out of ntfs-3g if you have a kernel prior to 2.6.20. I think something in ntfs-3g is broken prior to that kernel. However, you can mount the ntfs partition read only, as OP subsequently demonstrated.

Third: From what I see, I expect that the windows command fixmbr (repair console) will most likely fix OP's computer up as far as booting from Windows is concerned.

Now, even if fixmbr does fix things up, it could be that the partition is damaged since an attempt was made to resize. If the filesystem thinks it is larger than the partition it is on, the system will start but may subsequently (minutes, hours, or weeks later) corrupt itself. The fact that there is a 1 Gig partition at the end of the drive makes me suspicious.

OP should confirm that the windows partition can be read by mounting it read only and browsing it. I then would strongly suggest that OP copy the files off of it, just in case.

Then OP should either run fixmbr or install grub. I would think running fixmbr would be safer.

I suggest that you read my tutorial (linked below) + maybe the GRUB manual.

"creating a GRUB command" does not describe how the process works. First, You have to have boot code in the MBR (eg GRUB stage 1, Windows boot code, etc.) Assuming GRUB, this boot code then points to /boot/grub, where it finds the configuration files, stage files, and kernel, etc.
OR:
the MBR boot code can point to another copy of GRUB installed in the boot sector of a partition. From there, the next steps would be as described above.

Since you don't seem to be responding directly to the inputs people have given--and to some questions--it may become more difficult to help you. Specifically, I can't see how putting boot code in each partition would help you situation.....Can you?

Ok, I fixed the problem. All I needed to do was to make the partition with Windows on it bootable. I used a linux rescuecd to boot up, then used gparted and made my partition bootable. I FEEL DUMB. Thank you everyone for helping me out.