Did you make the change from sda3 to sda4? If so, what happened?
Never heard of pearl Linux. Is the link below what you have?
http://www.pearllinux.com/
Is this an MBR boot? Windows 7 should be although newer windows use UEFI. So which bootloader from which system do you have on the MBR?
If you actuall ran grub-update it wouldn't work as the actual command is update-grub which needs to be run as root user, maybe preceded by sudo. If Puppy has a menu.lst file, it is using Grub Legacy which is no longer being developed. Most current Linux systems use Grub2 which has a grub.cfg file, the Grub menu similar to menu.lst.
You could try an online search for 'bootinfoscript' and go to the site, download it and run it and post the output, a results.txt file here as it will provide more details on partition and boot files.