Yes, it is OK.

XFS, JFS, and LVM file systems are supported from grub-0.91-0.02001121102k.

In the case, the menu screen will not be displayed. The OS can not be booted or the boot images are found in different paths from the ones you thought.

If grub is installed in /boot/grub, then grub recognizes it to be under the /grub directory and does not recognize it being under /boot/grub.

That is, grub thinks that there is no /boot/grub/grub.conf for grub and therefore the menu is not displayed.

The same is said for locations of the kernel images.

Even if it is in /boot directory as seen from the Linux system, it is recognized as it is being located in / for grub.

Therefore, when you install grub in HDD as:

    # grub-install --root-directory=/boot /dev/hda 
   

grub operates well, although it may look ugly.

When starting from a grub prompt, do as follows:

    grub> root (hd0,1)
    grub> kernel /boot/vmlinuz-2.4.19-12m root=/dev/hda1
    grub> initrd /boot/initrd-2.4.19-12m.img 
   

You just have to add the options after the kernel command. For example:

     grub> kernel /boot/vmlinuz-2.4.19-12m root=/dev/hda1 acpi=no-idle vga=ask hdc=ide-scsi 
    

Originally, Windows cannot be started if any other boot loader is installed in the MBR of the primary master HDD.

In such a case, the map command which virtually replaces HDD is used. For example, do the following:

    grub> map (hd0) (hd1)
    grub> map (hd1) (hd0)
    grub> root (hd1,0)
    grub> makeactive
    grub> chainloader +1
    grub> boot 
   

The above should start your Windows.

Yes, it can do.

First make an xpm image in 14 colors for 640x480 pixels.

You can use gimp to make a favorite picture or get a picture from somewhere. Then, do the following to convert the picture (ImageMagick is required.)

    $ convert -geometry 640x480 -colors 14 hoge.jpg hoge.xpm 
   

Then compress the 14-color 640x480 xpm file by gzip and copy it into /boot/grub.

Finally, edit /boot/grub/grub.conf as follows:

    # Foreground color
    foreground = ffffff

    # background color
    background = 000000

    # Image to display
    spalshimage = (hd0,0)/boot/grub/hoge.xpm.gz
   

Please note that Momonga default splash.xpm.gz can be found in /boot/grub.

Well, sure it is. It can be said that LILO is enough.

However, when upgrading kernel, a mistake like doing

    # rpm -Uvh kernel-hoge-numm.i586.rpm 
   

and forgetting to run /sbin/lilo can lead you to a misery that your system no longer boots up. With grub you can avoid such a situation.

But grub enables you to edit your boot up menu from the menu screen, and let you execute a command from a prompt.

Even you might say that "LILO is easier and I do not make such a mistake," grub installed on a floppy can be handy and helpful in an emergency.