Hmmm...no, the grub on your hard drive will not boot the CD (??hard to tell what you mean). You need to boot directly from the CD, which means switching the boot device in your BIOS -- I presume you know that.
If you are booting the CD, and you say it checked the drives and then "nothing unusual happened", where are you then?
Lemme just make sure we're on the same page: is there room on your hard drive for another partition?
