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The battle droids need some kind of central computer to control them. in the past this was done through droid control ships. in a deleted (and hopefully restored in a future release) scene from episode II, the Jedi knock out the ship but are horrified to find that the droids are still active. I think that this is because General Grievous really is the supreme droid commander and through some complicated transmission relay, functions as a control for every droid in the galaxy. Therefore he must've been involved since at least the formation of the confederacy, though it is a little strange that the confederacies number two man is not present at the episode II meeting.
he must've been on Geonosis during episode II.
Any thoughts?

as far as we know, Grievous didn't exist in EpII
and I like to think that now too

then who or what comandeered the droid armies? just because he didn't fight, doesn't mean he wasn't controlling them. perhaps his body wasn't entirely finished yet.

the droids were controlled from the war room at Geonosis

or from the ships again?

no not the ships, the jedi knocked out one of the ships and nothing happened, it was established that the droids were not being controlled from there. I think one of the reasons that scene was cut (for now) is that it alludes to the general a bit too much.

so? it's not IN the movie, so as long as it's not in the novel it's still possible

Well, none of the ships seen were droid control ships, though the design could have changed.

are you kidding? check out Dooku's escape scene, there are like, three of them.