So I have an update in regards to my situation...

After some time getting in touch with the consular general at the Polish consulate in NY & the people at Charsky... (http://www.icharsky.com/profile.asp)
they both told me it was POSSIBLE for me to claim Polish situation considering my circumstance.
This is incredible news and I am very ecstatic on my dream becoming realized.
However, all good things come in time I suppose.
I was told by the consulate the process for claiming citizenship & then acquiring a passport would be about 14 months.
An attorney at Charsky told me the whole process would take 10 - 14 months and would cost about $3200.
The perceived benefit going through Charsky is that apparently I do not have my grandmother's birthcirtificate - just an affidavit - so they will do the investigating and handle all other BS.
10-14 months kills me though... ugh, any thoughts/suggestions are more than welcome.

Thank you guys for listening and all your suggestions.
All in all, I am very happy over the whole situation.