The issue: My cuisin wiped the MBR(i think by formatting the utilspartition) and Grub only loads in text mode. I'm trying to help him boot to windowsXP, but the Win XP boot floppy is not working. We have re-installed XP(XP before that whole MBR partition deal) and Red Hat Linux 7.3. RH linux does not load with the boot disk due to some mouse error.(optical Logitech) I just need some direction.

I have already tried to the following from the GRUB prompt:

rootnoverify (hd0,0)
makeactive
chainloader +1
boot

Didn't work. It brought me back to the GRUB prompt

Here is what I use (from my grub menu.lst)
title=Windows XP
root (hd0,0)
chainloader +1