Thanks for your help. I can now manually boot DSL Live from (hd0,1) and I also setup GParted Live in (hd0,2) and can also boot that from the grub prompt.

I wanted some clarification. The grub prompt is a courtesy of stage1 or stage2? If I don't have Stage2 on any partition, just stage1 in the mbr, will I get the grub prompt?

Secondly, even though I do have a /boot/grub/menu.lst together with all other grub files in (hd0,0) (the grub only data-partition), why am I not being shown the menu? Why only the prompt?

Thanks for all your time and help!