Actually, "chainloader" just passes off control to a separate bootloader, and as such works with both 9x and NT variants of Windows. My grub.conf looks like this:
#
# Sample boot menu configuration file
#
# Boot automatically after 30 secs.
timeout 30
# By default, boot the second entry.
default 1
# Fallback to the first entry.
fallback 0
# Windows
title=Windows XP
rootnoverify (hd0,0)
makeactive
chainloader +1
# For booting GNU/Linux
title Gentoo Linux 2.6.13-r3
root (hd1,0)
kernel /boot/bzImage root=/dev/hdb3 agp=try_unsupported
# For installing GRUB into the hard disk
title Install GRUB into the hard disk
root (hd0,0)
setup (hd0)
# Change the colors.
title Change the colors
color light-green/black blink-green/black
I plan on eventually applying that "color" line to the bootloader screen from the get-go, with an option to change it back to white-on-black if the blinking green-on-black gets too irritating.