Well, I decided to reinstall FC3 on my slave drive along with grub. After having new problems (it was probably something dumb that I did), I went ahead and installed grub on the master (hda) drive and the rest of FC3 on the slave (hdb) drive. Once again, FC3 worked just fine when booting it from grub and again when trying to boot Windows XP from grub, my compaq PC went to recovery mode which I quit.
To make a long story short, I went into my grub.conf file and explicitely changed from where windows was trying to boot from (change it from hda partiton 1 (system recovery) to partition 2 (windows). Below is the change.
Changed:
rootnoverify (hd0,0) # hd0 being master and 0 partition 1
chainloader +1
To:
rootnoverify (hd0,1) # hd0 being master and 1 partiton 2
chainloader +1
The first time I tried to boot to windows from grub, I got some windows warning - it still allowed to start window normally with no problem. After that, everytime I go to windows, I get no more nasty messages - it just goes straight through with no problem along with FC3.
Anyhow, thanks for your help -