grub list "MZ" for my windows boot "Help on Change"
 

Changed this in the "Grub/Boot/Menu.lst" file, and also ran the "jiffyboot" program by using the shell command but this took the windows boot option off of grub completely. What to do next?

Well, I'm certainly a newbie at linux but if you post your entire menu.lst file. I'll see if I can help.

Grub menu.lst modification rule no.1:
Grub is not lilo. You just mod menu.lst and reboot. No other commands needed.
Grub menu.lst modification rule no.2
Read the fine amnual on modification.

Add this to your menu.lst to boot windows:

title Winblows XP Service Crack 2
rootnoverify (hd0,0)
makeactive
chainloader +1

Assuming that winblows is on the first partition of the first disk.