Yes. I believe that ( with your grandfather's record open), you add a new Event and go to Extended, you can choose Adoption and choose the grandparent's names from there. The record should still show at the top who his parents were. Then you can add any text to the event that you might like.
As for lists, you might want to check our RUG of Portland website as to how to create an alphabetical list. You can find it at http://rug1.tripod.com/page12p.htmlhttp://rug1.tripod.com/page12p.html