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\
8. don't know how to move usr_cram.fs from C:\ to C:\boot\release, so that I can run multiple releases of Puppy. especially upcoming 1.0.4 has options to have different pup00? files (I guess I could modify rc.sysinit and remake a CD/image.gz). Anyway, it is good for now