Dual Booting with Windows XP

I am trying to understand the fine points of installing Grub on a system
with XP.
I did it successfully with lilo, but don't understand what I did.

I have gathered that XP has problems with a norml "Free" boot manager in the
boot sector. I did my current install using instructions that came with
SystemRescueCd, which uses Lilo. The lilo.conf example is attached below.

So, the questions are:
Q1: Is there a kind of boot-manager setup that is right or wrong with XP?
Q1: How is the one below different from an ordinary Lilo setup?
Q2: How can I do the equivalent using Grub?

Thanks,

Vic

Sample lilo config:
  lba32
  boot = /dev/hda
  map = /boot/.map   <<==  140 kb, looks sort of like executable code
  prompt
  install = /boot/boot-menu.b     <<== This is an empty file
  delay = 50
  vga = normal
  default=win
  image = /boot/vmlinuz1
        root = /dev/hda2
        label = sysrcd
        read-only
  other = /dev/hda1
        label = win
        table = /dev/hda

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