Unable to run Linux (Ubuntu) Installation w/o CD loaded in drive.

This box had a working Windows (XP) installation and we added an Ubuntu installation. It is set up dual boot with Grub. As long as we have any Linux live CD in the CD drive, you can successfully load the Ubuntu installation, without a live CD, you get page upon page of errors, and you cannot start linux.

I am assuming this is a problem in the configuring of Grub, but I haven't been able to nail it down.

Any help would be appreciated.

wubi

May be u chose to run from cd while installing.
There is a windows installer called wubi which you can download and directly run it from windows. wubi in turn downloads an iso image but you don't have to take care of iso image. wubi itself takes care of it.
good luck.