First. post ur detailed HDD partition table. That will make a clear picture of ur HD condition.
To remove the GRUB files ther is a program called superGRUB.
download the program from this link
http://beginlinux.com/server_trainin...1069-supergrub
The above link also contains the documentation.
Secondly, U asked about partition magic Bootable CD. It comes with the program.
Now its 'Norton partition magic'. After installing the program, It will ask for 'create rescue disk'. When u create that. thats it. U can recover windows by booting from the drive.
If u have any more queries, feel free to post it here.