I did a partial test of the NTFS capable grub(well I just installed it on a floppy) and it seems to be working as I can boot load a kernel/initrd pair stored on NTFS partition which then do the usual search(KNOPPIX way) of the real root system just fine.

The win32 installation part seems to have some problems but I cannot test as I don't have a C:\ with NTFS. NT's boot loader does not honour the chain boot to a boot sector on file trick if I stored the 512 byte file on D:\. NT thought I want it to load NT/XP and bark about missing hal.dll

If you want to try, I can find a way to send you the 3 files(one win32, and two grub image stage1 and stage2). All that is needed is a c:\ with NTFS. The process itself is non-intrusive as the win32 program just modify the regular file stage1/stage2 under NT/XP and won't touch the boot record etc.