OK, I finally made Puppy 1.0.3 working on NTFS partition. here comes step-by-step instructions how to do it:

Assumptions:

1. Windows 2000/XP on the 1st partition of the 1st IDE disk (/dev/hda1)
2. NTFS used for Windows

What to do (all steps in Windows):

1. Download Puppy 1.0.3 ISO file
2. Burn a live-CD or use WinISO to extract three files for the ISO file
   
   usr_cram.fs to C:\
   vmlinuz and image.gz to C:\boot\
3. Download pup001.zip and unzip to C:\
4. Download w32grub.zip and install it
5. Copy and paste following into a file C:\boot\grub\menu.lst
   
   default 0
   timeout 0

   title Puppy-1.0.3
   rootnoverify (hd0,0)
   kernel (hd0,0)/boot/vmlinuz root=/dev/ram PFILE=pup001-none-262144
   initrd (hd0,0)/boot/image.gz
   boot

6. Run WinGrub GUI to install GRUB, an entry will be added to C:\boot.ini (a hiden file) as follows, or you can edit boot.ini manully
   
   [boot loader]
   timeout=10
   default=multi(0)disk(0)rdisk(0)partition(1)\WINNT
   [operating systems]
   multi(0)disk(0)rdisk(0)partition(1)\WINNT="Microsoft Windows 2000 Professional" /fastdetect
   C:\GRLDR="Puppy-1.0.3"
7. Check all files are in place and reboot, and enjoy
   
   GRLDR, pup001 and usr_cram.fs in C:\
   vmlinuz and image.gz in C:\boot\
   menu.lst in C:\boot\grub\

drj