If the cde directory is writable, then it should be named tce instead of cde
Is there an onboot.lst file in the cde directory? If so, what does it contain?
I have no (successful) experience with nvidia graphics, so if the issue is related to that, we'll have to tag someone more knowledgeable on the subject.
The more I think of it, the more I suspect it is a graphics issue - otherwise I would expect to at least se some error message from grub before (or instead of) going black.
Maybe try specifying text on the linux line for which ever boot entry you select:
menuentry "tc" {
linux /boot/vmlinuz64 loglevel=3 cde vga=791 video=vesafb:ywrap,mtrr:3 text
initrd /boot/corepure64.gz
}