GRUB on fat32

[Domas Savickas]

I made post about booting Linux off fat32 partition
using GRUB boot sector chainloaded using Win2k boot.ini,
with help of Jochen Hoenicke I made some progress, but I wasn't
able to achieve what I was trying to do, so I'll just sum all it up:

1. Situation
I have following one IBM 75GB hard drive with
following partitions:
hd0,0 - fat32 Win2k
hd0,1 - Reiserfs MDK 8.1 "root"
...
hd0, 10 - fat32 Win2k

I also have Linux distribution on hd0,0 composed of two files "ZIMAGE" and
initial ramdisk "baslinux.gz".

2. Setup
I already used GRUB to boot MDK, so at first I added
    kernel (hd0,0)/zimage root=/dev/ram
    initrd (hd0,0)/baslinux.gz
to /boot/grub/menu.lst and I was able to boot (well, almost as it couldn't
mount root fs).

3. First try
I tried to make the same using boot.ini. I copied /boot/grub/* to
/mnt/windows,
updated menu.lst to contain only one item to boot off fat32c and did
    grub-install --root-directory=/mnt/windows '(hd0)'
then
    dd if=/dev/hde of=/mnt/windows/grub.sct bs=512 count=1
After reboot it worked as when booting GRUB off reiserfs.

4. boot.ini
Now, I added
c:\grub.sct="BasicLinux"
to boot.ini, then
grub-install '(hd0)'
to restore initial boot menu and rebooted.

When I chose to boot toWin2k from GRUB boot menu(1), and then
selected "BasicLinux" fom Win2k's boot menu I went was presented with
the same GRUB menu(1).
Question, what I'm doing wrong? Why when chainloading bootsector
it didn't read menu.lst off fat32?

Regards,
Domas Savickas